The technical and economic possibilities of demand side participation on the ancillary services marketUploaded: 1 of January, 2008

In our paper we analyze the possibilities to stimulate demand side actors' participation on the domestic ancillary services market. In the first part of the paper we introduce the concept of demand side participation in providing ancillary reserves, and the economic decision of industrial consumers to participate. After the general introduction we summarize the main conclusions of our survey conducted among large industrial consumers that could due to their flexible technology provide ancillary services reserves. The second part of the paper provides a critical analysis of the current procurement process of MAVIR. We highlight those items that 'unnecesssarily' provide barriers for the participation of consumers. Based on the analysis we propose modifications to the current procurement settings that would yield a more 'consumer friendly' environment.