Increased consumer power in the Nordic electricity market

How can the consumer's position in the electricity market be strengthened? How will consumer flexibility be enabled? What are the attitudes among decision makers in the energy sector (companies, agencies and interest groups)? These are examples of questions that will be targeted in the project.

Project name: Increased consumer power in the Nordic electricity market

Research specialisation: Future Energy Center

Primary funding organisation(s): Swedish Energy Agency

Co-operating/Co-production partners: Mälarenergi, Eskilstuna Energi & Miljö

Project leader: Erik Dahlquist, Professor in Energy Engineering, Mälardalen University

Project start date: 2010

Project end date: 2013

Funding: 5.5 million SEK

Description of the project

The deregulated energy market makes the role of the customer very important and also complicated. The existing pricing models are supposed to encourage the customer to make decisions which decrease the power in the system and decrease the overall cost. However, there is a lack of knowledge on how flexible the customers are and how the utilities react on active customers. This project will look deeper into customer flexibility on different pricing models. Also, different mechanisms are investigated during “energy live” with a large number of customers and utilities involved.

The other important area which is analyzed in the project is how small energy production will affect the energy system. It is investigated how small scale production can be initiated and how the utilities handle this new production.

The project will deliver the following results:

  • Knowledge how new technical system will affect the load profiles
  • Knowledge on how pricing models and incentives will influence the load profiles and give economical profits.
  • Knowledge how the decision makers react and act on a stronger demand of flexibility from the customer.
  • Knowledge on how more informed customer will take decisions regarding their energy use.
  • Form a new general simulation tool which can be used by the utilities for estimating the impact of new incentives.
  • The goal of the project is to show methods for increasing the impact of the customer on the energy system.