Shift, not drift : towards active demand response and beyond (topic 11)

This report was produced as part of the THINK project. The value and necessity of demand response as a flexibility means has been widely recognised among stakeholders and policy makers in Europe (e.g. EC, 2011a, 2012a, 2012b; Smart Grids Task Force, 2013; ENTSOE, 2012b). The gradual roll-out of smart meters at residential level and the deployment of smart grids are expected to provide the hardware for demand response. Demand response also requires the active participation of consumers, who are rather passive nowadays. There are two paths for consumers towards becoming active demand response participants: a gradual drift during a potentially long period, or a timely shift following proactive actions from the government, regulators and market players to engage consumers. This report assesses how to realise this shift towards active consumers using a consumer-centred approach and does so from the perspective of contracts, as active demand response is mediated through contracts between consumers and intermediaries.