The Government of the Russian Federation extended for 2023 a pilot project to manage demand for electricity in the retail market

On January 26, the Government of the Russian Federation adopted Decree No. 96 “On Amendments to Certain Acts of the Government of the Russian Federation”, extending for 2023 a pilot project on consumer demand management in the retail electricity market with the participation of specialized organizations – demand management aggregators.

The system operator plans to resume the selectionprocess  after the Federal Antimonopoly Service of Russia approves the maximum amount of funds for the provision of services. The preliminary deadline for the selection is February 2023.

The pilot project implemented by the System Operator started in June 2019. Within the framework of the project, the target model of a new market mechanism for managing demand with the participation of aggregators is being developed - its technological, financial and organizational aspects.

To date, a pool of aggregators has been formed, and a regulatory framework is being developed to launch the target model. The draft of relevant amendments to the Federal Law “On Electric Power Industry” has already passed the first reading in the State Duma.

Demand management aggregators are specialized organizations that coordinate the ability of retail consumers group to manage their electricity consumption, convert it into electricity demand management services and broadcast to consumers a part of the revenue received from the sale of this service. Thanks to aggregators, in the short term, consumers can receive a positive economic effect by replacing inefficient generation with demand management resources and lower electricity prices, and in the long term by taking into account the volume of demand management in the capacity market.