RESEARCH OPPORTUNITIES __________________________________________47

What are the flexible demand research priority areas?

A series of research propositions were developed to address the identified barriers to FD, particularly in the context of the decision-making steps required of actors involved in trading FD (FD sellers, FD buyers, policy makers and technology providers).

The research propositions were used as stimulus for a research opportunities workshop attended by 40 experts. The workshop discussed and prioritised the propositions and invited additional ideas for research. Participants noted that many of the research propositions are interconnected (not mutually exclusive), addressing similar barriers from different perspectives. The resulting prioritised research list is outlined in the table below.

Economics and incentives

Investigate alternative tariff structure models, price signalling mechanisms, and impacts on customers. This research would inform business models for trading FD as a resource and help to understand price sensitivities.

Investigate options to drive FD in a way that addresses network issues (including minimum demand). This research would aim to influence regulatory support for networks to engage with FD providers and encouraging network service providers to procure FD.

Investigate options for appropriately valuing the contribution of FD to each component of the electricity system (wholesale, network, RERT, FCAS) and rules by which FD could be paid from multiple sources to achieve value stacking and higher returns for FD providers.

Investigate aggregator models and the potential for the electricity market to simplify FD by recognising FD as a separate market; e.g. offering something akin to a feed-in-tariff for FD resources (proven market transformation model).

Review the early operation of Wholesale Demand Response mechanism.

Priority

High

High

High

Med

Low