Demand Response in the Russian Market: Challenges and Perspectives

On the developed countries electricity markets the Demand Response (DR) capacity has reached up to 5% of the peak demand. Consumers receive fair compensation for the flexibility they provide to the energy system. As a fact, DR reduces the electricity prices and facilitates implementation of innovative solutions into the energy system.

Although DR mechanism in Russia was launched in 2017, no significant results have been obtained yet: DR activation is rare and the economic effect is insignificant. Russian market replicates the experience of foreign energy systems, new for local consumers and generators DR mechanism has not yet reached its optimal balance. Some technical adjustments still has to be made in parallel with DR remuneration fine tuning.  
How to integrate the promising DR mechanism into the Russian Wholesale Electricity and Capacity Market efficiently? How is the DR efficiency related to the decisions on the refurbishment of the thermal power plants and transition to the X-6 Capacity Auction being taken now?


Partner, Power Sector Practice
Senior Consultant