Editing IPCC:AR6/WGIII/Chapter-9 (section)

==== 9.5.3.5 Digitalisation and Demand-supply Flexibility ====

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Demand-supply flexibility measures are experimentally being adopted in North America, Europe, and Asia-Pacific Developed regions. Changes in the current regulatory framework would facilitate participation based on trust and transparent communication ( [[#Wolsink--2012|Wolsink 2012]] ; [[#Nyborg--2013|Nyborg and Røpke 2013]] ; [[#Mata--2020b|Mata et al. 2020b]] ). However, consumers expect governments and energy utilities to steer the transition ( [[#Seidl--2019|Seidl et al. 2019]] ).

Economic challenges are observed, as unclear business models, disadvantageous market models and high costs of advanced smart metering. Technical challenges include constraints for HPs and seasonality of space heating demands. Social challenges relate to lack of awareness of real-time price information and inadequate technical understanding. Consumers lack acceptance towards comfort changes (noise, overnight heating) and increased automation ( [[#Drysdale--2015|Drysdale et al. 2015]] ; [[#Bradley--2016|Bradley et al. 2016]] ; [[#Sweetnam--2019|Sweetnam et al. 2019]] ). Risks identified include higher peaks and congestions in low price-hours, difficulties in designing electricity tariffs because of conflicts with CO 2 intensity, and potential instability in the entire electricity system caused by tariffs coupling to wholesale electricity pricing.

Emerging market players are changing customer utility relationships, as the grid is challenged with intermittent loads and integration needs for ICTs, interfering with consumers requirements of autonomy and privacy ( [[#Wolsink--2012|Wolsink 2012]] ; [[#Parag--2016|Parag and Sovacool 2016]] ). Although most private PV owners would make their storage system available as balancing load for the grid operator, the acquisition of new batteries by a majority of consumers requires incentives ( [[#Gährs--2015|Gährs et al. 2015]] ). For distributed energy hubs, social acceptance depends on the amount of local benefits in economic, environmental or social terms (Kalkbrenner and Roosen 2015), and increases around demonstration projects ( [[#von%20Wirth--2018|von Wirth et al. 2018]] ).

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