The future Network Code on Demand Response (NC DR) will play a decisive role in shaping the design and operation of Local Flexibility Markets (LFMs) across Europe. In this context, Europex has developed a set of policy recommendations aimed at ensuring the efficient design and implementation of market-based flexibility solutions.
Building on the findings of the European Commission’s recent VITO study on Local Flexibility Markets, the paper highlights three key principles: market-based procurement of flexibility, neutral and transparent local market operation, and effective interoperability between LFMs and wholesale electricity markets.
Together, these principles provide the foundation for a robust framework for demand response and flexibility services, supporting a more resilient, competitive and affordable European energy system while facilitating the transition towards a decarbonised power sector.
