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Demand:
Active demand response

Challenges

Implementing and encouraging a more active role of consumers presents technological, market, and regulatory challenges.

Technological challenges:

  • development of smart devices,
  • cost-effective connectivity,
  • development of smart device control and management algorithms.

Market challenges:

  • development of a supply- and demand-side flexibility market,
  • evolution of service providers (for instance through a new role as aggregators).

Regulatory challenges:

  • removal of barriers and creation of a stimulating regulatory framework that rewards demand response. Example: a transition from the postage stamp tariff system to locational marginal pricing for distribution cost allocation.
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Benefits
World
Challenges

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