Demand Response in the Italian regulation and first results

In the overall framework of energy transition, new Demand Response (DR) mechanisms for passive customers have been recently introduced in the Italian electricity system to increase the offer of ancillary services and adequacy in the electricity market. In the paper, at first the concept of DR is recalled, with a taxonomy of the different ways to implement it. Then, regulation and remuneration mechanisms are analyzed for the enabled mixed virtual units (UVAM), introduced by the Italian regulator in 2017 with regulatory sandbox pilot project, and for consumption units to participate in the capacity market (UCMC) introduced in 2019. Eventually, the key points of the two mechanisms are compared in terms of actual service provided to the system, remuneration structure, performance assessment and penalties. Similarities and differences between the two mechanisms are highlighted, which can be useful to the Regulator and to technical and market actors for the possible evolution of DR in Italy and for the role that UVAM and UCMC could play in the next years.