In times of energy transition, when intermittent decentralized generation is on the rise and large traditional generation assets are retiring, electricity systems increasingly need flexible solutions to ensure security of supply.
Demand side management (DSM) is one such solution which energy firms should have on the radar. Although it can bring tremendous value to transmission system operators (TSOs) and an additional source of revenue for other market players, DSM is still surprisingly underdeveloped in most parts of Europe and beyond. The technical functionality is nevertheless straightforward: by adjusting energy demand when external signals are received, aggregators1, industrials and even households can provide additional capacity and energy to the market, and be remunerated for it. So what is holding back some markets from unlocking these sleeping buffers in energy systems?