Background Electricity generation and the electricity grids are facing a radical challenge. On the one hand, scarce fossil resources as well as CO2 emission targets mean that an increasing share of energy generation must come from renewable energy sources (RES); on the other hand, the largely decentralised and highly intermittent electricity generated by RES changes the traditional patterns of energy consumption and generation. To meet increasing energy demand a stable and efficient operation of the grids is needed. The expansion of RES requires new ways of load management. Whereas conventional energy fuels can be converted whenever needed, RES cannot. Wind and solar power generation depend on external conditions and their supply is not directly controllable. Demand Response (DR) aims to adjust the electricity demand to the grid requirements at a given point of time. It is an important pillar in the context of Smart Grid concepts for achieving the EU's 20/20/20 goals. Objectives The overall objective of the project is to reduce CO2 emissions by facilitating the integration of RES and contributing to energy efficiency in the electricity grid by taking advantage of the potential of large commercial and industrial customers to be flexible in their energy consumption. The specific objectives are: To evaluate (teechnically, ecological and economically) the potential flexibility in terms of energy consumption of industrial customers; To demonstrate the potential (economic) benefits for the customer of more flexible energy consumption; To demonstrate the potential benefits that the customer’s flexibility entails for energy retailers as well as electricity network operators (transmission and distribution), e.g. network stability at peak feed-in of RES; To define the certification prerequisites of the proposed processes and develop a business model in order to facilitate market acceptance of DR services and products; and To disseminate information about the advantages and risks of this project's methodology to other industries and spread the concept at national and international levels. Expected results: The project will demonstrate the benefits of the participation of large industrial customers in the electricity market. Those benefits will imply that the customer’s energy demand will be optimised from an economic point of view leading consequently to an increase of energy efficiency in the electricity grid. By reducing energy use during peak hours and shifting it to times when less energy is being consumed and/or the demand can mainly be covered by RES generated energy, economic advantages will trigger a reduction of CO2 emissions. Specific results will include: Demonstrating the benefits of active involvement of industrial customers in electricity markets; Evaluating of the (technical, environmental and financial) potential of DR and its impact on network stability; Estimated energy savings of 202 TWh/yr could be realised by DR programmes in the EU; €50 billion could be saved by investments relating to peak generation capacity; Drafting of a business model and (market and policy) implementation roadmap for DR; and Definition of the certification prerequisites of the proposed processes.