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Why is Demand Response Flexibility Important?

Why should property owners connect their properties to the demand response market?

Cost Savings​

By adjusting their electricity consumption according to the market price of electricity, property owners can reduce their energy costs. When electricity prices are high, for example during peak demand, the building can temporarily reduce its energy usage and save money.

Improved Grid Stability​

Demand response helps stabilize the electricity grid by smoothing out peaks and troughs in demand. It assists grid operators in avoiding power outages and reduces the need to use fossil fuel backup power plants that can quickly ramp up production.

Better Utilization of Renewable Energy​

Since renewable energy sources are intermittent, demand response can help match a building's energy consumption to times when there is plenty of renewable electricity available in the grid.

Reduced Climate Impact​

By optimizing energy consumption, buildings can reduce their climate impact, especially if demand can be shifted away from times when electricity production has higher carbon emissions.

The Future of Demand Response Flexibility​

Demand response flexibility is managed within the EU by ACER, which is an EU agency aimed at monitoring and promoting cooperation between national energy regulatory authorities within the European Union. ACER is an important part of the EU's energy policy and contributes to creating a well-functioning and integrated internal energy market.

Requirements for demand response (demand flexibility) within the EU are regulated by several legislations as part of the EU's energy and climate policy. The expectation is that demand response will be fully integrated into all relevant energy markets by 2025, with a strong focus on flexibility to support the green transition.