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Demand response

Like other forms of traditional flexibility, demand-side flexibility is largely centralised and restricted to large industrial or commercial consumers.

Demand Response Jpg

Key findings

Demand response availability at times of highest flexibility needs and share in total flexibility provision in the Net Zero Scenario, 2020 and 2030

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The recent years saw positive developments but even faster progress is needed

Positive developments in demand-response regulation and implementation happened in 2020 and 2021. More countries removed barriers preventing demand-response from providing more services to the grid, and some also increased the amount of capacity awarded in electricity markets. Nevertheless, even faster progress is needed: 500 GW of demand response should be brought onto the market by 2030 to meet the pace of expansion required in the Net Zero Emissions by 2050 Scenario (NZE), a tenfold increase on deployment levels in 2020. In the NZE, the equivalent of 15% of average annual demand can be shifted to some extent by 2050 (shares are higher in many advanced economies with demand response markets in operation today). Demand response can be unlocked through actions taken in this decade to open markets to demand-side participation, encourage new business models and establish controllability standards for equipment and appliances.
Our work

The Users TCP’s mission is to provide evidence from socio-technical research on the design, social acceptance and usability of clean energy technologies to inform policy making for clean, efficient and secure energy transitions. Decarbonisation, decentralisation and digitalisation are embedding energy technologies in the heart of our communities. Communities’ response to these changes and use of energy technologies will determine the success of our energy systems. Poorly designed energy policies, and technologies that do not satisfy users’ needs, lead to ‘performance gaps’ that are both energy and economically inefficient. User-centred energy systems are therefore critical for delivering socially and politically acceptable energy transitions.