Our Take on the Clean Industrial Deal - Why Everyone Agrees that Energy Flexibility is at the Heart of Europe's Energy Transition

Flexibility: the cornerstone of a successful renewable integration

The EU has set an ambitious target of 42.5% renewable energy by 2030, which requires a massive scale-up of solar and wind power. While this transition is essential for Europe’s climate goals, it also brings with it well-known challenges, such as renewable intermittency, grid congestion, and high electrification costs. Addressing these challenges by capitalising on demand-side flexibility (DSF) is now essential and crucial for energy-intensive industries in the context of the Clean Industrial Deal. By utilising the existing flexibility of their processes, industries that wish to do so can align their energy consumption with renewable availability and low prices. In return, this helps:

• Lower energy costs through improved efficiency
• Alleviate grid congestion and enhance energy security
• Unlock new revenue streams by participating in electricity markets
  
  

Walburga Hemetsberger, CEO of SolarPower Europe, highlights the necessity of flexibility: "We welcome the Commission’s commitment to electrification and boosting flexibility. Demand response, storage, and other flexibility solutions are not just beneficial—they are indispensable for integrating higher shares of renewables and achieving the EU’s 2030 renewable targets. And the benefits are clear: flexible, renewable-based electrification can reduce day-ahead energy prices by 25% by 2030."

Affordable energy and the role of flexibility

Europe’s reliance on imported fossil fuels has led to energy price volatility and higher supply costs. European countries can decrease energy prices by turning towards cheaper, local renewable energy sources. A lack of grid flexibility and an ageing infrastructure have contributed to slowing down the widespread rollout of a renewable-powered energy system. To ensure energy stability and affordability, European countries must strengthen their grids by implementing existing flexibility solutions such as demand response and energy storage.

A core objective of the Clean Industrial Deal is reducing energy prices through the Affordable Energy Action Plan. This plan introduces eight key actions to lower energy bills in the short term, while driving much-needed structural reforms to make energy systems more resilient. Among the most crucial actions is the push for increased flexibility, which will:

• Balance supply and demand more effectively;
• Reduce price spikes, negative pricing, and volatility;
• Support the penetration of renewable energy sources;
• Open markets and remove national barriers to demand response and energy storage.
  
  

Cosimo Tansini, Senior Policy Officer at the European Environmental Bureau, emphasises the importance of bold action: “For too long, national barriers have prevented energy users from fully participating in the energy transition through demand response. This has hampered the penetration of renewables - a double missed opportunity to cut electricity costs and accelerate decarbonisation. The new Affordable Energy Action Plan is a chance to change course. Now, the Commission must push EU countries to swiftly remove regulatory and market barriers while building on best practices to develop a robust flexibility strategy. Only then can Europe unlock the full potential of demand-side response to electrify industries, integrate renewables, and lower energy costs for both businesses and households - an urgent need at a time when energy poverty is on the rise.”

Electrification: a key pillar for industrial competitiveness

With the performance indicator of increasing economy-wide electrification to 32% by 2030, the EU Commission is trying to apply the principle that 'what gets measured gets done'. But this figure will not be reached without proper support, including a strong policy framework prioritising flexibility. By embracing demand response and energy storage, industrial players can manage electricity consumption efficiently, ensuring access to reliable and affordable energy. This transition is beneficial and necessary to achieve the EU’s renewable targets and strengthen our industrial competitiveness.

Malgosia Rybak, Climate Change & Energy Director at Cepi, underscores the importance of demand-side flexibility for industry: "The Clean Industrial Deal rightly calls for unlocking the full potential of voluntary demand-side flexibility. For the pulp and paper sector, a policy framework that ensures easy access to the electricity grid and affordable fossil-free energy is essential to incentivising grid balancing services, benefiting all stakeholders." 

The path forward: national action and implementation

While the Clean Industrial Deal sets a clear direction, its real impact will depend on national-level implementation. Member States must take swift action to implement existing EU electricity legislation, particularly on flexibility, opening flexibility markets and removing barriers to demand response and storage. In addition, energy-intensive industries will require support in meeting electrification targets through clear policy measures.

Simon Bushell, CEO and Co-founder of Sympower, calls for immediate political action: "At this crucial moment for EU energy policy, we welcome the Commission’s push to deploy demand response. This low-cost, big-impact solution can deliver immediate benefits. What’s needed now is political will. Member States must remove barriers and seize this low-hanging fruit for a more secure, affordable, and resilient energy system."

There is no reason to wait. With the right policies, energy flexibility will be a cornerstone of Europe’s clean energy future. 

A wide group of actors now looks forward to continuing a collaboration with all institutional stakeholders to implement new demand response rules and contribute to the upcoming Grid Package discussions. The time for action is now.