Promote consumer adoption of demand-side flexibility technologies

Demand-side flexibility solutions like smart EV charging and hydrogen electrolyzers will also be crucial for the decarbonization of multiple areas of the economy. In BNEF’s Net Zero Scenario, such technologies are increasingly important for intraday balancing of the power system, by requiring consumers to behave in a more price-responsive way – to use power when it is cheap and abundant and avoid expensive peaks. More price-responsive demand can lower supply-side flexibility costs. As the power system grows, smart EV charging becomes one of the largest sources of demand-side flexibility in the future energy system. As a result, policymakers, regulators and industry players should collaborate on promoting consumer adoption of demand-side flexibility technologies. This means allowing customers to access dynamic or real-time energy tariffs, encouraging them to shift usage to periods of low prices and to alleviate network constraints. It will also be important to encourage the roll-out of technology – such as smart meters and appliances – to help consumers to respond to price signals. Policymakers also need to tackle barriers to smart EV charging such as a lack of suitable charging stations.