Demand response in electricity distribution grids: Regulatory framework and barriers

Demand response for residential consumers is making a slow progression, despite its benefits towards various market participants, and the challenges faced by distribution grids concerning the integration of distributed and renewable energy sources, and new demand side applications. While some obstacles are techno-economic in nature, there also exist barriers related to regulation. The objective of this paper is to provide an overview of the current regulatory framework concerning demand response in distribution systems, as well as to identify the main regulatory barriers to implementation for residential consumers. It is found that in some areas, the current regulatory framework is inadequate or incomplete. An analysis of the relevant literature allows to classify these barriers into six categories.