Institut français des relations internationales
Key findings
This report draws lessons for China from the experiences with the European electricity transition for scaling up renewables in the power market. The report emphasises the importance of market design for attracting least cost sources of caron-free flexibility to provide system reliability. It emphasises the importance of best practice approaches to interconnection planning. It also insists on the importance of developing residential demand-side flexibility (DSF). Residential DSF is cited as a growing source of peakloads and can lower the cost of the transition to carbon neutrality in most countries. Residential DSF can work when efficient pricing, infrastructure, and digital tools align to make DSF easy and worthwhile for consumers. It also requires winning consumer support for DSF and overcoming a variety of institutional barriers, including the fragmentation of markets and regulatory uncertainty.
Source : https://www.ifri.org/en/studies/strategic-dimension-power-system-flexibility-opportunities-europe (2025)
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