Demand flexibility and what it can contribute in Germany

Abstract The chapter summarizes key insights from work on demand flexibility in Germany. It looks at how the demand for flexibility increases with an increasing share of renewables and discusses the role that demand flexibility can play to cover that demand. What are the pros and cons of demand flexibility compared to other flexibility options? What role can new consumers play in providing flexibility? And why hasn’t it happened yet? The chapter shows that demand flexibility can make an important contribution to provide flexibility, but there are also limitations and pitfalls, such as the trade-off between flexibility and efficiency.