For over a decade, the EU has assisted to a ramp-up of Demand-Side Flexibility (DSF) through higher available volumes, access to markets and services provided to the grid. Opening of different markets and the development of innovative projects have exposed the ability of DSF and distributed energy resources (DER) to compete with traditional generation in wholesale markets, capacity mechanisms, and ancillary services. Available volumes are expected to reach 164 GW of DSF by 20301 from consumers in the industrial, commercial, and residential sectors. However, the current market and product design is not without flaws, and numerous barriers prevent the full development of DSF’s potential. The EU will only achieve these 164 GW if the regulatory framework ensures consumers have access to all markets on an equal footing.
To achieve this goal, the EU can learn from some best practices across the world. This smartEn Spotlight is aimed at highlighting best practices for the use of DSF developed outside of the EU.