Implementation of Demand Side Flexibility from the perspective of Europe’s Energy Directives: A Joint Working Group Report from the Concerted Actions for the Energy Efficiency Directive (EED), Renewable Energy Source (RES) Directive & Energy Building Performance Directive (EPBD)

Demand Side Flexibility (DSF) is the capacity to change electricity usage by end-users from their normal or current consumption patterns in response to changes in the price of electricity over time, or to incentive payments. These price changes or incentives can be grid related and market related. Grid operators may provide customers with grid related signals to manage congestion or to keep the frequency of the network stable. Price signals from the market can come from the wholesale market, e.g. day-ahead or intra-day markets. Suppliers or other commercial parties (such as aggregators that collect small quantities of end user flexibility and give those aggregated volumes a value on wholesale markets or as ancillary service) may provide customers with price signals because, e.g. when wholesale prices are very low or extremely high.

The price signals or incentives are expected to result in customer changes that may or may not have an impact on the convenience and comfort level of end-users. In general, it is expected that DSF for consumers can only be successful if the impact of DSF on the comfort and convenience level for consumers is minimal. The success of DSF among consumers is likely to be defined by a combination of the willingness of consumers to respond to signals actively, and the availability of smart devices, smart systems and smart buildings to allow consumers to respond passively to signals via controlled equipment.