Demand Response (DR) is a mechanism to alter changes in patterns in electricity consumption by consumers through pricing signals and incentives, thereby reducing peak demand and strengthening grid flexibility. DR covers intentional modifications on the customer’s electricity usage patterns via altering the time of use and duration of use. DR has traditionally been divided into price-based programs and incentive-based programs. DR is in its nascent stage in Europe with sporadic pilot programs underway in the residential sector. Experts opine that DR can achieve close to 40% of EU’s 2020 targets concerning energy savings and Carbon dioxide (CO2) emission reductions.

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