European demand side flexibility markets assessment

A strategic analysis of the value of Residential Flexibility across 10 European Countries.

The client background

A large North American provider of residential demand side flexibility currently working towards international expansion, specifically, into the European market. This required a route to market strategy and selecting initial target countries. The target entry date for a pilot project is 2025.​

The client commissioned us to provide additional knowledge and data on the European flexibility market landscape and to stress test internal assumptions for their planned market entry.​ 

Client needs and their key question(s)

• What are the key access requirements to participate in different value streams in each European market?
• Which assets can participate in different value streams?
• How does the value available vary across different European markets?

Our solution

We provided an analysis of the value streams available and key market barriers for residential assets across 10 European countries: France, Germany, Great Britain, Italy, Netherlands, Norway, Portugal, Spain, Sweden and Switzerland. This focussed on three areas:

1. Technical markets assessment: An evaluation of the access requirements for each flexibility value stream in each country. This included commentary on the market barriers for residential assets in each country and an overview of the market and regulatory changes expected in the short to medium term.
2. Residential asset capability mapping: A determination of different residential asset capabilities, with these capabilities mapped to specific service requirements. This mapping identified which value streams are accessible for various asset types.
3. Revenue potential estimation: An estimation of the annual revenue potential that can be achieved in each market with a predefined portfolio of residential assets.

Our impact

Drawing on in-house knowledge and expertise of European Flexibility, we provided our client with an overview of the level of accessibility to each market. This included an estimation of the value that can be gained. Our insight will feed into the clients’ European market expansion strategy, enabling them to effectively target the most profitable countries and markets going forward.