This policy brief reinforces the need for a regional approach to resource adequacy and highlights the importance of demand-side resources to ensuring reliability and meeting clean energy targets in Europe. Utilizing data from the latest ENTSO-e Scenario Outlook and Adequacy Forecast, the author demonstrates that although some Member States and regions may suffer a capacity deficit, Europe as a whole maintains a surplus through 2025. This suggests that a more coordinated regional or European approach to resource adequacy assessment would result in investment efficiencies, lowering the cost of national reliability mechanisms and supporting the orderly retirement of aging, higher-emitting generation. When reasonable assumptions about demand response are factored in, the Member State capacity deficits out to 2025 are eliminated or greatly reduced. RAP recommends that policymakers recognize and capture the reliability and economic potential of more active demand response resources, which represent a competitive and operationally convenient alternative to supply side resources.
Resource Adequacy, Regionalisation, Demand Response
October 8, 2015
- Philip Baker