By Guro Grøtterud, Director of Regulatory Affairs at NODESmarket
Recently appointed as a smartEn Demand-Side Flexibility Ambassador, Guro Grøtterud shares her perspective on why demand-side flexibility must be treated as a core system tool, not an afterthought, and why waiting for “perfect conditions” risks slowing down Europe’s energy transition.
Being named a smartEn Demand-Side Flexibility Ambassador is, first and foremost, a source of pride. Not only for the recognition itself, but for what it represents: the quality and credibility of the work delivered by smartEn as a first-choice voice for the demand-side flexibility sector. That collective effort is what truly gives meaning to the title.
Unlocking the full potential of demand-side flexibility
An untapped opportunity for demand-side flexibility today lies beyond access to existing markets. Flexibility should be valued in local flexibility markets by system operators. Well-organised markets that allow value stacking would help optimise outcomes, but the first essential step is for system operators to actually set up these markets.
This is primarily a regulatory issue, combined with the need for significant change management in a traditionally risk-averse sector. Cultural shifts, IT systems, and operational and planning processes all need to evolve if flexibility is to be enabled at scale.
Explaining flexibility in simple terms
When speaking with policymakers or stakeholders who are less familiar with flexibility, the message is straightforward. Digitalisation allows consumption to adapt to the grid, not only the grid to adapt to consumption.
The focus should be on optimising the use of existing assets, rather than relying solely on building new grid elements.
Tackling persistent misconceptions
Many misconceptions around flexibility remain, but one of the most persistent is the idea that everything must be fully optimised before flexibility can be procured, from IT systems and rules to prequalification and accessible resources.
In reality, it works the other way around. System operators need to start procuring flexibility in order to learn how to optimise its procurement and use. Waiting for perfection only delays progress and presents a major risk for investing in systems that only function in theory.
The policy lever that matters most
From a policy perspective, the most impactful change would be the introduction of well-functioning incentives and control mechanisms that ensure SOs genuinely apply the “flexibility first” principle (and prefer market-based), rather than the traditional “investment or queuing” or, in some countries, rule-based flexibility.
That being said: full efficiency cannot be expected from day one in these markets, as this depends on measures internally in the system operator, on the time it takes to build liquidity in the market and measures taken on national level (e.g. independent aggregation models, value stacking possibilities).
What’s next for flexibility in Europe
Looking ahead, one development stands out clearly: the Network Code on Demand Response, announced for 2026, and the beginning of its national implementation across Member States.
This will play a decisive role in shaping the flexibility ecosystem in the years to come. One major challenge here will be to ensure stakeholder involvement beyond public consultations, to ensure a better understanding of the sellers when system operators draft the rules of the market they will act in.
Motivation behind the work
My motivation is rooted in a strong belief in optimising the use of all available resources to enable a faster, more affordable – and therefore more acceptable – energy transition. Contributing to that goal is deeply rewarding, as is the opportunity to meet and exchange with motivated, inspiring, and extremely knowledgeable experts from across Europe.
A favourite myth to debunk
One energy myth comes up time and again:
That myth was decisively challenged when Gothenburg DSO (GENAB) announced that their flexibility market, Effekthandel Väst, operated since 2021, has, in combination with grid investment, enabled them to cancel all flexible connection agreements from November 2025.
Investment and flexibility are not competitors; both belong in the system operator’s toolbox.
