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Working paper / Energy Law & Policy

How to Engage Consumers in Demand Response: a Contract Perspective

Author(s): HE Xian, KEYAERTS Nico, AZEVEDO Isabel, MEEUS Leonardo, HANCHER Leigh, GLACHANT Jean-Michel

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ABSTRACT

Nowadays, the European electricity systems are evolving towards a generation mix that is more decentralised, less predictable and less flexible to operate. In this context, additional flexibility is expected to be provided by the demand side. Thus, how to engage consumers to participate in demand response is becoming a pressing issue. In this paper, we provide an analytical framework to assess consumers' potential and willingness to participate in active demand response from a contract perspective. On that basis, we present policy recommendations to empower and protect consumers in their shift to active demand response participants.