Residential Electricity Tariffs in Europe: Current Situation, Evolution and Impact on Residential Flexibility Markets

• Main Authors: Youssef Oualmakran, Juan Manuel Espeche, Mario Sisinni, Thomas Messervey, Zia Lennard
• Format: Article
• Language: English
• Published: MDPI AG 2017-11-01
• Series: Proceedings
• Subjects: tariffs; demand response; residential; distributed energy resources (DER); Mas²tering project
• Online Access: https://www.mdpi.com/2504-3900/1/7/1104

Residential flexibility (a.k.a demand response) is a key component of smart grids to reduce our carbon footprint, to have reliable power (balance between power and demand, and avoiding congestion) and more affordable electricity tariffs. However, to have a significant participation in the flexibility markets, households needs good price signals. Today, the electricity bill components (volumetric and capacity for both consumption and generation) are evolving and grid services are increasingly more available to households. This is due to the evolution in the energy mix, deployment of new technologies (smart meter roll-out, gradual uptake of electric vehicles, heat pumps and batteries), regional integration (interconnectors and integration of balancing markets) and evolution of society (sharing economy or Peer2peer and ubiquity of smartphones). These trends will have a quantitative impact on the different energy bills in the short term (2020) and longer term. Further investigation is also suggested to go from the qualitative analysis to a better quantitative analysis.