Romania is introducing a formal demand-response mechanism that will allow consumers to receive compensation for temporarily reducing electricity consumption when the system requires additional flexibility.
Energy regulator ANRE has approved the framework, giving transmission system operator Transelectrica an alternative to increasing generation or imports during periods of tight supply.
Under the mechanism, Transelectrica will specify the amount of demand reduction required. Eligible consumers, suppliers and other market participants will then submit competitive offers stating how much consumption they can reduce and the price at which they are willing to do so.
Participation will be voluntary.
Large industrial users are expected to be among the first participants because significant consumption can be adjusted through changes in production schedules, load management or temporary reductions in non-essential processes.
The mechanism could later extend to households through suppliers and aggregators, which would combine thousands of small flexible loads into volumes large enough to participate in the balancing market.
Examples could include delaying water heating, air-conditioning demand or appliance use during evening peaks.
The reform is particularly relevant as Romania adds large volumes of wind, solar and battery capacity. Greater demand flexibility should reduce the need for expensive balancing generation and imports during periods when renewable output changes rapidly.
