Value and effects of adopting residential flexibility in the European power system

The residential sector is progressively becoming an option to increase flexible capabilities and offer better supply-demand balance. This paper quantifies the value that residential end-users can offer to the European power system through demand response (DR). We model DR as an operational option in a capacity expansion model. In particular, we investigate the benefits of load shifting of five household appliances, including electric vehicles, in the European Power system. By accounting for short- and long-term decisions, we examine the development of prices, capacity investments, and power generation until 2060. We define two storylines entailing political pathways, economic growth, and social engagement. Our findings suggest that residential flexibility decreases the total system cost by around 1% and has proven to be an alternative to Li-Ion batteries. Additionally, the focus on Norway sheds light on the ability of DR to reduce the volatility of power prices.