Definition
Demand response is the planned adjustment of electricity consumption by end users in response to changes in the spot priceHourly electricity price set in the Nordic power market the day before delivery - basis for variable electricity prices to end users., grid tariffThe component of electricity customers' bills that covers grid rental - regulated by NVE., or explicit requests from the system operator (StatnettNorway's system operator for the transmission grid - owns and operates the high-voltage network and operates Elhub.) or aggregators. Demand response can be activated automatically (via a smart control system) or manually (by notifying the consumer). There are two main types: price-based response (the consumer reacts to a high spot price by reducing consumption) and incentive-based response (the consumer receives payment for reducing consumption on request). In the Norwegian market, demand response is particularly relevant for industrial customers with large flexible loads (smelters, pumping stations) and households with electric vehicles and heat pumps. With ACEREU's energy regulator - coordinates national regulators and sets common rules for the power market./RMENorwegian Energy Regulatory Authority - government authority that regulates grid operations and energy markets. and ElhubNational hub for metering data and market processes in the Norwegian electricity market.'s new message types for flexibilityAbility to change power consumption or production in response to price signals or system operator needs. activation, demand response is becoming a regulated part of the power market.