Use of DEMAND RESPONSE for system services with well-defined interactions between market players and network operators (and TSO-DSO exchange of information)”

Task co-leaders:
– DENMARK – Denmark technical university – DTU
– FINLAND – Technical Research Centre of Finland – VTT


  • 2.1 Status review of demand response
  • 2.2 Demand response potential in different systems and processes
  • 2.3 Use of demand response in distribution network operation and planning
  • 2.4 Microgrid as a provider of demand response and Flexibility


The scope of the task is to assess how Demand Response (DR) could be a cost effective option for operation of power systems and markets with large amounts of renewable energy.

The challenge is to utilise the potential flexibility from different sources effectively while leveraging on the primary use of the units as economically as possible for the system as well as for the equipment owner. A further challenge is to enable multi-use of flexibilities for various purposes, ranging from local network support to day-ahead markets and avoiding interest conflicts when applying flexibility for certain purpose while having an impact on other aspects as well.

Flexibility from DR can be utilized on multiple system levels. Where large industrial customers can already be involved in demand response schemes, smaller units still remain mostly unexploited in terms of flexibility. Aggregating small units into bigger entities is an interesting option which however requires efficient management of individual resources in order to make the scheme economically viable. Currently the most interesting resources can be found in smaller industry and in different processes where power demand can typically be between 100 kW to some MWs. Some specific applications such as larger cooling systems or waste-water management are good examples of processes offering good flexibility.

Demand response flexibilities/services can be exchanged on markets through actors like an aggregator. Aggregators have good integration in market structures to provide balancing, intra-day and faster reserves. Connection to actual resources takes place in many cases through a sub-aggregator, which is an actor having certain portfolio of controllable resources in its command but not being a market actor. Typically the control possibility is originally for remote maintenance or similar purpose and DR can be implemented as an additional function. For example EV charging operators, heat pump manufacturers or real estate managers can act as sub-aggregators.

Main objectives

The key objective of the task is to assess current status of DR in participating countries, including for instance the status of regulative framework, market structures, active roles and new development trends.

The work will include: collection of experiences from research and demonstration projects among

participating countries; create common approaches to analysis of DR systems in power systems and markets via common methods and sample cases, develop solutions that can be utilised in a variety of systems via use of common approaches to control and integration of DR.

The work will also address regulative situation for applying DR, for operating as an aggregator on various markets and for individual customers participating in DR schemes. This will be conducted as a survey among countries. The work will also clarify the status of different sub-aggregators and their roles in demand response value chain.

This task will enable exchange of ideas and best practices across participating countries. Common barriers will be identified and solutions for overcoming them discussed. Actions harmonizing the role of demand response across participating countries are sought for.

More in detail, this task will also consider:

–           Provision of services from demand units
–           Integration of DR into control system
–           Characterization of types of DR, linking different energy domains
–           Standard models, standard data, standard systems for demand response
–           Analysis methods for demand response at different spatial and temporal scales