Demand side flexibility – unleashing untapped potential for clean power

In its latest briefing note, Demand side flexibility – unleashing untapped potential for clean power, the ETC highlights the critical role of demand side flexibility in delivering clean, expanded power systems as countries gear up to increase ambition of Nationally Determined Contributions (NDCs) this month.  

Demand side flexibility means being able to shift the consumption of electricity at peak times, helping offset new grid and generation capacity needed across the system, reducing costs and speeding up the transition.  

In many cases, demand side flexibility options are low-cost and already available. For example, heating or cooling buildings a couple of hours ahead of need can be achieved at no additional expense in well insulated buildings. Other solutions, such as smart-EV charging are 100% efficient and essentially free to implement – providing a low-cost alternative to short duration storage. 

Overall, demand side flexibility can play a significant role in buildings, industry, and the transport sectors. Our analysis suggests that a third of total electricity demand in 2050 could be flexible – roughly equivalent to today’s entire electricity consumption. By actively incorporating demand side flexibility into updated NDCs and into national clean power strategies, progress towards decarbonised power systems can be accelerated, and be achieved at even lower cost. 

 In 2025, the ETC will be publishing a comprehensive view of routes for optimising power flows and managing system balancing, enhancing system resilience, and supporting a clean, electrified future. 

Read more about this on our blog.