Designing Regulatory Framework for Demand Response Service Integration in Baltic Electricity Markets

Mitigating climate change is one our generation’s greatest challenges; however, similarly to many public goods where benefits are enjoyed by many while the costs are born by few, finding a balance between the pace of the change and cost borne by society can be complicated. To raise to this challenge, policy makers must reconcile naturally conflicting objectives – technical system reliability, uptake of new, climate-neutral technology, and low energy costs. The tools developed during the research as well as the findings can support policy makers in developing market regulation and decide on the necessity for additional stimulus to accelerate the pace of demand response service participation in electricity markets.