The UK’s electricity system is expected to be fully decarbonised by 2035, subject to security of supply considerations. The majority of the power will be supplied by variable renewable energy; mainly wind and solar energy. To accommodate this, more low-carbon sources of flexibility will also be needed.

Demand-side response (DSR) covers a range of services that vary the demand of both domestic and commercial consumers to help balance the power grid. Opportunities for DSR have increased significantly in recent years with the rollout of smart meters – now installed in half of UK properties. This year, National Grid ESO ran a trial of a Demand Flexibility Service to incentivise consumers for voluntarily flexing the time when they use their electricity. This was one the first of its kind to be deployed worldwide and was successfully used to manage demand over the course of the winter.

This POSTnote will consider developments in demand-side response, evidence of its potential contribution to decarbonisation of the power system, and the policy or market mechanisms needed to fully realise the opportunities DSR presents.

Work on this briefing commenced in April 2023.

Photo by Nicholas Doherty on Unsplash

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