Integration of demand-side response in the Swiss ancillary service markets through the ENTSO-E central settlement model

The major challenge for integrating demand-side response is preparing a suitable market platform with clear rules regarding the interaction of the different stakeholders. Demand-side response has the technical capability to offer diverse grid services and the most challenging hurdle is to adapt the existing market rules which were initially conceived with centralized power generation in mind. The market rules must take the different stake holders into consideration. The ENTSO-E (European network of transmission system operators for electricity) central settlement model allows a central entity to settle the transfer of energy with the BRP (balance responsible party) which has been activated by an independent aggregator. This model allows the participation of demand-side response and distributed generation units in the Swiss ancillary service markets. The implementation is explained with the example of a municipal waste incineration plant that takes part in the Swiss aFRR (automatic frequency restoration reserves) and mFRR (manual frequency restoration reserves) markets through an aggregator.