1. CAN Renewables Workshop Market Design and Prosumers Frauke Thies, Executive Director, SEDC 26 October 2015

2. The Smart Energy Demand Coalition

3. Source: AGORA, 2013 The new realities

4. Source : CALISO, 2013 What does this mean for the market?

5. A smart decentralised power system Optimal use of energy when it is cheaply available Market based on increasing RES and flexibility

6. Source: 3E, 2015 What is standing in the way?

7. How do we get there? 7 STEP 1: CREATING FAIR MARKET ACCESS FOR ALL PLAYERS STEP 2: VALUING WHAT IS REALLY NEEDED STEP 3: PROVIDING THE RIGHT INVESTMENT SIGNALS

8. Focus on prosumers 8

9. High Expectations RES Integration & System Adequacy System Efficiency Competition Cost Reduction Source: GE Digital Energy Consumer Choice & Benefit

10. Solar Generation 10

11. Rule #1: make it simple 11

12. Rule #2: make it accessible 12 Market share of electricty suppliers in the EU 28 in 2013 (GWh/year and %) Source: ACER/CEER, SolarCity, WeShareSolar

13. Rule #3: make it smart A natural drive for local production boosts new solutions (storage, smart appliances, system services) which reduce peaks. 13

14. The consumer powered energy transition Allow consumers to use their own energy Make self-consumption accessible to all Unlock demand-side flexibility Make grid tariffs fit for the energy transition Enable the sale of surplus generation 14

15. Legislative proposals on market design and security of electricity supply Energy Efficiency Package Renewable Energy Package ESD proposals EU strategy on Heating and Cooling 2 nd PCI list + initiatives on gas Communication on Electricity and Gas Retail Markets Consultation on Market design and regional electricity market Post-2020 ETS and carbon leakage scheme Review of the Energy Labelling Directive Q4 : 2 nd PC I list Q4 2015: LNG and Energy Storage Strategy Q4 2015: Initiative to strengthen Energy Community Q4 2015: Report on Eur Energy Security Strategy 2016: Review of Decision on information exchange mechanism with regard to IG agreements between MS and third countries 15 July: Communication on Electricity and Gas Retail Markets 15 July: Consultation on new European electricity market design Q4: 1st Energy Infrastructure Forum 2015-2016: review of ACER and energy regulatory framework 2016 and every 2 years thereafter: COM analysis on energy prices & costs 2016: Legislative proposal on market design and electricity markets 2016: comm on progress towards energy infrastructure and interconnection target Latvia PresidencyLux Presidency Netherlands Presidency Slovakia Presidency 2015 2017 2016 15 July: Review of the Energy Labeling Directive Q4: EU Strategy for heating and Cooling 2016 : Review of the Energy Efficiency Directive 2016: Review of the Directive on Energy Performance of Buildings February 2015: comm on Road to Paris 15 July: post-2020 ETS proposal 15 July : post-2020 Carbon leakage scheme Summer 2016: Post 2020 ESD proposal September 2015: Communication on an integrated SET plan 2015-1016: Initiative on EU global technology and innovation leadership on energy and climate June 2015: Conference on decarbonisation of road transport 9 July: EP adoption MSR Late 2015: Review of implementation of IED 1. Security of Supply 3. Energy Efficiency 2. Integral Energy Market 4. Decarbon- isation of the economy 5. Research and innovation Ongoing: Debate over chemical and energy regulations under TTIP Summer package Winter package November 18: State of the Energy Union COP 21 Key legislative proposals 2016 Political Timeline 2015 - 2016 Source: ECF (shortened)

16. Backup 16

17. Why Aggregation?

18. The EED paves the way …. but

19. Enabling choice: allowing independent aggregation Source: Smashbrand Step 1: Enable consumer participation

20. NetworksRetail Enabling independent aggregation Standardised Framework: Data exchange Sourcing costs Volumes (Baseline) Governance: appeals process & body

21. Step 2: Create Viable Products Source: pinterest.com

22. Product Definition Source: EnerNOC

23. Performance Measurement Stages: Qualify potential resources against product specifications as entry gate Verify resource conformance to product specifications during and after participation Calculate the amount delivered as part of financial settlements Step 3: Measurement and Verification Requirements Processes should be at aggregated level

24. Step 4: Fair Payment and Penalties Equality Transparency Value Flexibility

25. And this is just the beginning…...untapped DR potential on wholesale markets and for distribution system

26. Exploiting the Full Potential Creating fair access is a start. To use the full potential on all markets, pricing signals and incentive structures need to change! Source: EnerNOC