Demand-Side Flexibility in Electricity Markets (Communication)

The European Commission wants incentives for demand-side flexibility in electricity markets ("demand response") to be increased thereby contributing to network stability. For this purpose, electricity consumers will be increasingly offered variable real-time electricity tariffs. The Commission also points out, in connection with demand response, the required investment in network infrastructure and consumer concerns about data protection.

cepPolicyBrief

Demand response increases the flexibility of electricity demand and can contribute to network stability. In order for the demand response to be economically worthwhile the resulting cost savings must be greater than the investment put in. In principle, consumers should decide on the extent to which their consumption data is passed on. The data protection measures, proposed by the European Commission, are suitable for compliance with the requirements of EU data protection law.