Demand flexibility in the electricity system

Power Lines: Special grid tower to change the direction of the overhead high-voltage direct-current transmission line across the Danish Kattegat island of Laesoe

Projektbeskrivelse

The purpose of the project is to develop scenarios for how we support consumption flexibility in the electricity system based on a number of use cases, including with regard to data sharing and regulation.

The green transition requires increased electrification in society, which raises our electricity consumption. At the same time, that electricity should preferably come from renewable energy sources, whose production is more fluctuating and non-controllable by nature. These two drivers increase the demand for flexibility from the consumption side in the electricity system.

The ambition of the project is to identify the potential and benefits of flexibility at both the societal and stakeholder levels, investigate regulation in the area, and examine data-related challenges and data needs.

Advisory board

Chair
Sigurd-Næss Schmidt
Senior Fellow & Consultant, Næss-Schmidt Advisory

Vice Chair
Henrik Madsen
Professor and Head of Department, DTU Compute

Eva Berneke
Board Member, CIP Foundation

Kia Marie Jerichau
Senior Director, Energinet

Per Christian Honningsvaag
EMEA Business Leader for Energy & Resources, Microsoft

Marlene Holmgaard Fris
CEO, Andel Energi

Mette Rose Skaksen
Executive Vice President, Green Power Denmark

Troels Ranis
Deputy Director General, Danish Industry

Anders Stouge
Regulatory Affairs Director, Norlys

Nina Möger Bengtsson
Client Success Director, Octopus Energy

Bent Madsen
CEO, BL – Danmarks Almene Boliger

Anders Leth Espensen
Senior Vice President, Nykredit

Lea Schick
Senior Research and Innovation Manager & PhD, Alexandra Instituttet

Chrisian Dahl Winther
Chief Energy Economist, EIFO

Yasemin Yavari
Member of Youth Advisory Boardet, CIP Foundation

Observatør
Stine Leth Rasmussen
Deputy Director, Danish Energy Agency

Observatør
Thomas vom Braucke
Head of Division, Forsyningstilsynet

Løsning

CIP Foundation’s mapping efforts will be presented on an ongoing basis as results emerge from each of the three focus areas.

The first analyses will map the flexibility potential of different types of electricity consumption, as well as the socio-economic and climate benefits of activating this flexibility. Examples include CO₂ reductions through better utilization of renewable electricity, cost savings from lower tariff payments, and potential revenues from ancillary services and avoided grid investments.

The second phase examines regulatory barriers and incentives in greater detail and, based on these findings, presents recommendations for how flexibility can best be activated.

The final phase of CIP Foundation’s work focuses on identifying which data are needed, which data are currently available, and how data can be organized to scale solutions, support market development, and foster innovation. All analyses are based on selected use cases to ensure that the project’s deliverables remain practical and tangible.

Outcome

Through CIP Foundation’s project, the foundation is being laid for a comprehensive and long-term strategy for a more resilient and sustainable electricity system—one that can accommodate future societal developments while delivering benefits to consumers. This foundation will enable a market-driven green transition, in which consumers become a central part of the value chain. It will support the green electrification of Denmark and strengthen the country’s position as a frontrunner in digitalization, potentially opening up export opportunities for Danish solutions.

The results can serve as valuable input to future policy and regulatory initiatives. In this way, the project will contribute to achieving Denmark’s climate targets and support the transition to a more sustainable energy sector, ultimately benefiting consumers.