ACER: Drawbacks Of Introducing Peak-Shaving Products Under Normal Market Conditions Outweigh Potential Benefits
Following a consultation process launched in March 2025, ACER has concluded that implementing peak-shaving products in the EU electricity market under normal conditions would bring more challenges than advantages.
What are peak-shaving products?
Peak-shaving products are market-based tools that enable market participants to reduce their electricity consumption (during peak demand periods) in exchange for compensation.
Under the 2024 Electricity Market Design (EMD) Regulation, the Council of the EU can declare a regional or EU-wide crisis if wholesale electricity prices become excessively high. In such cases, Member States can direct system operators to use peak-shaving products to reduce power demand, helping stabilise the grid and lower prices.
Why an ACER assessment?
ACER was mandated to assess the potential impact of developing peak-shaving products on Europe’s electricity market under normal (e.g. non-crisis) conditions. ACER’s assessment evaluates whether these products can be introduced without disrupting the normal functioning of electricity markets or redirecting demand response services towards peak-shaving products.
What are ACER’s conclusions?
After engaging with stakeholders (through an Expert Group and a public consultation), ACER concludes that the drawbacks of introducing peak-shaving products under normal conditions outweigh the potential benefits. Therefore, ACER does not recommend amending the existing legal framework to allow their use outside of electricity price crisis situations.
What’s next?
Based on ACER’s assessment, the European Commission will decide whether to propose amendments to the Electricity Regulation to allow these products in non-crisis conditions.