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Customers’ input in securing the flexible management of the power system will be assessed

Customers’ input in securing the flexible management of the power system will be assessed

As the consumption and generation of renewable electricity is on the rise, the Lithuanian electricity transmission system operator Litgrid and the electricity and gas distribution company Energijos Skirstymo Operatorius (ESO) will seek ways to ensure the effective and flexible operation of the power system in the future.
This week Litgrid announced an international public tender to carry out a feasibility study on assessing the technical potential of demand side response in Lithuania and establishing technical requirements for providing such services. Demand side response is designed to offer customers financial incentives by encouraging them to reduce power consumption at times of peak and shifting their electricity usage to another period suitable for the customer. This service is already in place in France, England, Ireland, Sweden, Finland and other countries. 
The feasibility study will also include proposals how to better integrate customers into the market from the technical point of view and seek technical solutions to involve customers in the balancing of the power system. The findings of the feasibility study will be used to establish technical requirements for customers and developing a flexible service market not only in Lithuania but also in other Baltic countries. 
“The power system is undergoing significant changes at the moment. As the share of renewable electricity in the power mix increases, power system operators must take responsibility to integrate into the power system all types of power plants – those that generate power from renewable resources and those using conventional resources. The behaviour of customers becomes more and more important and we must create conditions for them to take part in the market by motivating them to regulate their power consumption in line with the prices and situation on the market,” said CEO of Litgrid Daivis Virbickas. 
“The rapid development of electric cars and renewable energy technologies will have a significant impact on the operation of power systems. As efforts will be made to ensure the reliable management of power systems and reasonable investments into power distribution systems, the customers who will be able to adapt to changing conditions will play an increasingly important role. Incentives will be offered to customers who will show flexibility in adjusting their power consumption schedules and contribute in ensuring the stability of power systems. Such model has been implemented in some foreign countries,” pointed out CEO of ESO Dalia Andrulionienė.
Judging by the experience of other European countries, the involvement of customers in the supply-demand management process means that the participants of the power market can respond to changes in prices and reduce their expenses. This is also of benefit to the operators of the power distribution system as they can optimise investments in the power grid, manage the power grid in a more flexible way and improve the quality of supplied power. 
The feasibility study, which is due in the middle of 2018, will be financed by Litgrid and ESO in equal parts. 
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