The 2021-2023 energy crisis accelerated the development of demand-side flexibility, driven by the pressing needs of the electricity system. However, in 2024, with the restoration of supply-demand balance in electricity and reduced ambitions for the Decarbonised Flexibility Tender (AOFD), the demand and value of flexibility temporarily declined.
This period highlighted the value of demand-side flexibility for the electricity system. The rise in negative prices and intra-day volatility in the spot market during 2024 underscored its relevance in a post-crisis environment. According to RTE, demand-side flexibility is expected to become the primary lever for improving supply-demand balance margins by 2030-2031, as outlined in the 2023-2035 Forecast Balance Report.
To achieve these targets, the focus in 2025 will be on market design, the applications that enhance flexibility (e.g., tertiary sector, EVs), and tools for mobilising flexibility, including:
- Revisions to the capacity mechanism post-winter 2025/2026, with a public consultation expected in early 2025.
- Adjustments to the market framework following the AOFD, ensuring sufficient flexibility is available by 2030.
- Changes to the TURPE tariff, including shifts in off-peak/peak hours to better align consumption profiles (e.g., water heating) with favourable production periods (midday during summer).
- Rapid development of flexibility in the tertiary sector, supported by the BACS (Building Automation and Control System) decree, enabling technical building systems to be controlled and the emergence of “Flex-Ready” certified Building Management Systems (BMS).
- Growth in flexibility derived from EV charging infrastructure (or directly from electric vehicles).
- Empowering large consumers — particularly those with “Block+spot” offers or corporate PPAs (cPPA) — to directly optimise and monetise demand-side flexibility through load curve optimisation.
E-CUBE has developed strong expertise in demand-side response through its recent projects and the experience of its consultants. We would be delighted to discuss these market perspectives and opportunities with you. Feel free to contact our experts below to arrange a discussion on the topic.
