Unlocking Demand-Side Flexibility: European Regulatory Insights for U.S. Electricity Markets

Mar 03, 2027
B209
Policy and Regulation

As the U.S. power system evolves toward greater electrification, renewable integration, and distributed energy resource (DER) adoption, demand-side flexibility is becoming a key enabler of reliability, efficiency, and cost control. Across U.S. markets, utilities and system operators are working to integrate flexible demand and aggregated DERs into wholesale and distribution-level operations—challenges that mirror developments in Europe.

The European Network Code on Demand Response (NCDR) provides a comprehensive regulatory framework designed to unlock demand-side participation by ensuring transparent, interoperable, and non-discriminatory access to energy and flexibility markets. While rooted in the European regulatory context, many of its core principles strongly align with ongoing U.S. initiatives, including FERC Order 2222 and efforts by ISOs/RTOs to enable aggregated DER participation.

This paper offers first-hand insights from experts involved in drafting the NCDR, presenting key design principles with direct relevance to U.S. stakeholders, including:

  • Non-discriminatory access to markets for demand response and DER aggregations
  • Coordination frameworks between transmission operators (ISOs/RTOs) and distribution utilities
  • Standardized prequalification and participation requirements for flexibility resources
  • Harmonized approaches to data exchange, visibility, and transparency
  • Clear roles and responsibilities across system operators and market participants

In addition, the paper explores how these principles address common challenges seen in U.S. markets—such as fragmented market rules, limited DER visibility, and coordination gaps between wholesale and distribution operations.

Beyond the regulatory framework, the presentation highlights practical implications for utilities, aggregators, and market operators, and discusses how similar approaches could support scalable, market-based flexibility in the U.S. context.

Join us to gain actionable insights into how European regulatory design can inform the next generation of flexibility markets in North America—and what it means for utilities aiming to lead in the evolving energy landscape.

Speakers
Geir Magne Abusdal
Geir Magne Abusdal, Systems Manager - Glitre Nett
Richard Sarti
Richard Sarti, CEO - NODES AS
Chairperson
Farrokh Rahimi
Farrokh Rahimi, Executive VP - OATI