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Best practise for stimulating Demand Response Innovation in Europe

Energy transition Energy consultancy Customer & market insight Flexibility research System flexibility

We helped DESNZ capture key lessons and best practise from its Demand Response (DR) innovation program to inform how it can best support and simulate deployment of DR in residential and non-residential buildings in the future.

The client background

DESNZ (at the time, BEIS) provided funding for DR innovation projects between 2016 and 2023, focussing on identifying and demonstrating controllable flexible demand in residential and non-residential buildings. Following this innovation programme, DESNZ commissioned an evaluation to determine how effective this programme was at enabling UK innovation in this sector and whether it was value for money for the UK taxpayer.

What the client needed and their key question(s)

DESNZ wanted to measure and compare the level of success of its DR program with other similar innovation programs across Europe. They wanted to capture learnings from stakeholders involved in the innovation projects to capture learnings on what worked well and where improvements could be made for future funded projects.

Our solution

We compiled a list of all DR projects from similar innovation funding programmes at an EU level and in four European countries with advanced innovation programmes in DR (France, Germany, Netherlands and Norway). We then summarised key learnings and insights from the most successful innovation projects compiled in this list.

We provided a copy of our Market Monitor for demand side flexibility in Europe (an annual report that maps out the regulatory progress and accessibility of every market in Europe to demand side flexibility).

We collaborated with Technopolis, a consulting company leading this review, on this project – providing our deep insights and expertise on DR markets across Europe to enhance the impact of the review.

The LCP Delta difference

Our deep expertise in the European demand-side flexibility landscape allowed a robust and comprehensive report on the effectiveness of this BEIS (now DESNZ) DR programme to be produced. This will influence and inform how the UK Government provides innovation funding in the future, enabling a more successful and effective deployment of DR. It will also help ensure that UK taxpayer funding is utilised most efficiently.

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