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Why is Demand Flexibility Important?

Why should property owners connect their properties to the demand flexibility market (Demand Response)?
- Because flexibility creates direct property benefits (lower costs/revenues) and system benefits (more stable power grids and more efficient use of production and grid capacity).

Cost Savings and Revenues​

Demand flexibility allows you to control electricity consumption to better match:

  • price variations (increasingly with 15-minute resolution in day-ahead), and
  • local peak demands that drive costs and capacity issues. In practice, this means that a building can reduce or shift loads during expensive/strained periods and better utilize cheaper periods. After the shift to 15-minute trading in the EU's day-ahead market (September 30, 2025), price signals become more detailed and thus more relevant for control.

Improved Grid Stability and Higher Supply Security​

Flexibility is used to stabilize the electricity system on two levels:

  • National balance (TSO): Resources can contribute to support services/reserves via Svenska kraftnät (e.g., FCR, aFRR, mFRR). This often occurs through collaboration with a BSP/aggregator that is the counterparty and responsible for delivery.
  • Local grid capacity (DSO): Electricity companies can procure flexibility on a market basis from local flexibility markets to cut peak demands and mitigate grid capacity shortages.

The result is a reduced need for emergency measures and better utilization of existing grid infrastructure.

Better Utilization of Renewable Electricity​

Wind and solar power vary. With demand flexibility, buildings can shift consumption to periods with high availability of renewable electricity and reduce it when the system is more strained. This increases the system's ability to integrate more renewables without compromising operational reliability.

Reduced Climate Impact​

When flexibility reduces the need for expensive and marginally produced electricity during peaks, and when consumption is shifted to periods with more renewable production, the climate impact can decrease. Flexibility is therefore a practical component in electrification and energy transition.

Demand Flexibility 2026 – Clearer Markets and Regulations​

The development in the EU and Sweden is moving towards more standardized and transparent conditions:

  • The EU has introduced 15-minute trading in day-ahead (from September 30, 2025).
  • In Sweden, local flexibility markets are being developed, and Ei has approved harmonized market products that grid companies can use for market-based purchases of flexibility (decision December 2025).

For support services, Svenska kraftnät is a central actor and describes the process for delivering reserves (often via BSP/aggregator).

Demand flexibility in the EU is primarily regulated through the electricity market regulations (including Directive (EU) 2019/944) and has been strengthened by the electricity market reform that came into effect on July 16, 2024 (Directive (EU) 2024/1711 and Regulation (EU) 2024/1747). The focus in 2026 is to scale up flexibility through non-discriminatory market access for active customers/aggregators and more granular price signals – including 15-minute trading in day-ahead introduced on September 30, 2025.

For Demand Flexibility, Enkey AB collaborates with Solfolket which can manage price fluctuations based on your electricity supplier's pricing model.
If you have questions or concerns regarding Demand Flexibility, contact Enkey via email.