Abstract

Climate change dramatically impacts the structure of energy business by adding renewables. In traditional energy networks, the balance between the demand for- and the offer of- power is managed by increasing the amount of commodity or by shedding loads. Customer-centered grid brings new paradigm about changing the economic behavior of small- and medium- scaled energy users instead of varying the amounts of commodity that is called flexibility. Flexible cooperative behavior of many actors participating in liberalized intraday market reduces pollutants because it optimizes renewable energy. However, it has implications on power markets in terms of prices and has technology implications nation-wide. This article discusses a generational change that moves decision making from few control rooms to the democratic neighborhood of the web. The objective is to present a changed socio-economic context and attract the attention of researcher to new challenges. The main result is a dynamic equilibrium that exists between the reward offered by the utilities to their customers and the advantage obtained by the utilities from such a flexible behavior. The article main conclusion is on the role of new market product called demand-side flexibility in the transformation of power markets towards ecological sustainability.

Key words: Demand-side flexibility, energy market, intraday trading.