Impact of home market on business development and internationalization of demand response firms

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Journal Title
Journal ISSN
Volume Title
A1 Alkuperäisartikkeli tieteellisessä aikakauslehdessä
Date
2022-03-01
Major/Subject
Mcode
Degree programme
Language
en
Pages
11
1-11
Series
Energy, Volume 242
Abstract
The transition toward more renewable-based energy systems increases the need for new flexible resources, such as demand response (DR). Previous literature has found various barriers for DR utilization, but much of this research has focused on the initiation of DR operations or barriers in national markets and not on factors that hinder market upscaling and firm internationalization. We address this gap by analyzing interviews with 22 DR companies active in Finland, one of the early mover countries for automated DR. While most of previous research has focused on electricity DR, our interviewees also include district heating DR companies. By using the Technological Innovation System (TIS) framework, we study how the advanced regulatory and market framework and the technology rollout in Finland have affected the DR service development and the internationalization of Finnish companies. Based on our results, the DR market formation in Finland has largely relied on the Finnish transmission system operator's early decision to allow independent aggregation and the early large-scale rollout of smart meters. The advanced home market has enabled firms to develop new solutions and prove their concept. Yet, the highly structured nature of energy markets complicates the access to both advanced and less advanced foreign markets.
Description
Funding Information: This work was supported by the Strategic Research Council (SRC) at the Academy of Finland (grant number 293405 ). Publisher Copyright: © 2021 The Author(s)
Keywords
Demand response, Energy flexibility, Internationalization, Technological innovation system (TIS)
Other note
Citation
Annala , S , Ruggiero , S , Kangas , H L , Honkapuro , S & Ohrling , T 2022 , ' Impact of home market on business development and internationalization of demand response firms ' , Energy , vol. 242 , 122533 , pp. 1-11 . https://doi.org/10.1016/j.energy.2021.122533