2021-10-14-IRENA-Demand-side_flexibility_for_power_sector_transformation_44页_4mb

Demand-side flexibility is a key solution for integrating variable renewable energy (VRE) into power systems, reducing peak loads, and lowering electricity generation costs. It involves technologies and practices that adjust electricity demand to match supply, particularly through sector coupling and advanced demand response. Six key applications—industrial demand response, residential electric water heaters, district heating, electric vehicles with smart charging, power-to-hydrogen, and aggregators—demonstrate varying levels of maturity and impact across different time frames. Current global potential for demand-side flexibility is 4,000 TWh (457 GW), expected to grow to 7,000 TWh (800 GW) by 2040, driven by electrification of transport and heating.

Demand-side solutions are suitable for specific sectors: power-to-hydrogen is viable for industry, power-to-heat and residential electrification are competitive for buildings, and EVs are adaptable for all sectors. Innovations in enabling technologies (e.g., smart charging, IoT), business models (e.g., aggregators, energy-as-a-service), market design (e.g., time-of-use tariffs), and system operations (e.g., virtual power lines) are critical for scaling these applications. For instance, aggregators enable small-scale resources to participate in grid services, while accurate forecasting aids hydrogen storage for seasonal flexibility.

Demand-side flexibility reduces VRE curtailment, flattens load profiles, and enhances grid reliability. Challenges include regulatory barriers, infrastructure gaps, and consumer behavior. To unlock its full potential, policy support, investment in ICT, and continued research are needed, allowing demand to act as an active participant in energy transitions.