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Project information

Regulatory Developments with Implications for the Activation of Electricity Demand

P. Mastropietro P. Rodilla J.P. Chaves A. Bello

February 2026 - June 2026

Funding entity Repsol S.A


The project analyses regulatory changes in four specific areas (capacity mechanisms, non-fossil flexibility support schemes, distributed services and local markets, system services) that could affect the activation of electricity demand and the retailing business.
• It analyses the possible participation of demand resources in the Spanish capacity market, as well as other international experiences in countries where demand has successfully entered these markets.
• It studies what changes could be brought about in this area by mechanisms supporting non-fossil flexibility and the possibility that demand resources could use these mechanisms to provide both systemic and distributed services.
• The development of regulation on local and distributed services is reviewed, comparing it with relevant international experiences, and the possibilities that these regulatory changes open up for demand resources, both at the level of local markets and flexible connections.
• The possibility of demand resources providing adjustment services to the system, especially through specific products, is studied, analysing the Spanish experience as well as other relevant experiences.
• The project also attempts to place these regulatory changes and the resulting opportunities for demand activation in a medium-term time frame, in order to identify priority issues for the retailing activity. In addition, the main barriers to demand response participation and the tools necessary for its effective participation is identified.


Layman's summary: The project analyses regulatory changes in four specific areas (capacity mechanisms, non-fossil flexibility support schemes, distributed services and local markets, system services) that could affect the activation of electricity demand and the retailing activity.



Techniques employed: Regulatory analysis



2026_REPSOL_REG