How Demand Response boosts the circular economy

The circular economy is the future. By facilitating the sharing of goods and services and a greater use of renewables, DR is boosting circularity

Published on 3 September 2020

How Demand Response boosts the circular economy

The climate crisis, demographic growth and scarcity of resources have made our current development model unsustainable. The new frontier is the circular economy, a paradigm that replicates nature’s cycles in the economic system, which Enel X has placed at the core of its business model. All of our solutions are founded, to varying degrees, on five keystones that form the basis of the circular economy. One example of this is Demand Response (DR), a service in which we are leaders in Italy, with a 35% market share and approximately 350 MW of managed capacity.

DR programmes, promoted by network managers and DR aggregators (Balance Service Providers – BSPs) like Enel X, remunerate commercial and industrial consumers in exchange for their availability to reduce their energy consumption or increase their production on demand, allowing the electricity operator to respond rapidly to peaks in demand and supply, ensuring greater flexibility and stability for the grid.

In the current scenario, Demand Response represents not only an opportunity for a more sustainable electricity system, but also an enabler of the circular economy, contributing to opening up new opportunities to increase energy efficiency and modelling new consumption behaviours that can reduce CO2 emissions.

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