The Technology Platform Smart Grids Austria is an association of relevant stakeholders in the field of electrical power supply. The Platform was founded in 2008 with the support of the Climate and Energy Fund, the Ministry of Transport, Innovation and Technology and the Ministry of Economy and since then the FEEI – association of electrical and electronic industries and Oesterreichs Energie support as host organizations.

The aim of the Platform is to pool joint forces for future intelligent electricity grids in order to support an energy- and cost- efficient system operation.

Synergies through coordination of stakeholders from industry, energy sector, research and public bodies should be used efficiently.

Austrian expertise in smart grids ise strengthened by flagship projects and made visible internationally.

You can find here more information on the platform.

In 2021 and 2022 extraordinarily high prices have been observed in electricity markets across Europe. The main reason behind the high electricity prices is the high price of natural gas, which is used to generate electricity. Natural gas-fired power plants are often needed to satisfy the demand for electricity when the demand is at its highest or when the volumes of electricity generated from other technologies such as nuclear, hydro, or variable renewable energy sources do not suffice to cover demand. Hence, natural gas is often said to be the price-setting technology in the European electricity system. Demand for natural gas and electricity increased as economies opened up after the pandemic lockdowns but also due to the 2022 high summer temperatures and the resulting increased cooling demand in parts of Europe. At the same time electricity generation from certain technologies, e.g., nuclear, has been below historical levels due to technical and weather-dependent circumstances. The Russian invasion of Ukraine added a supply shock that further exacerbated the constraints and pushed prices up.

All actors are needed in the transition of the energy system, not least the end-users, also referred to as the customers. This group may for example provide their demand-side flexibility. However, the incentives today can be seen as being too weak and the barriers to participate with flexibility too high.

A survey has been conducted that aims at laying the basis for a common understanding of international market designs and different flexibility services that are currently in use. To capture the whole picture, the topic of market design was split into three subtopics, covering general market design, flexibility market design, and flexibility services for system operators. Each of these topics is made accessible by several questions that have been answered by the respective countries, enabling the Working Group to understand presently used market designs and flexibility services. We find that the design of electricity markets differs significantly between European and non-European countries, thus presenting a wide range of challenges to the countries in question. Consequently, there are no general-purpose solutions for the successful implementation of flexibility markets related to operational planning. However, several common issues were identified and will be investigated in the further course of the work of Working Group 9 through stakeholder interviews from participating countries.