The key objective of the EcoGrid EU project is to demonstrate efficient operation of a distribution power system with high penetration of many and variable renewable energy resources. The demonstration will take place on the Danish island Bornholm with more than 50 % of electricity consumption from renewable energy production.A real-time market concept will be developed to give small end-users of electricity and distributed renewable energy sources new options (and potential economic benefits) for offering TSOs additional balancing and ancillary services.Strong industrial participation and innovative experiences from related European and US Smart Grids RD&D project will contribute to the development and implementation of robust ICT platforms and information architectures. This is the key to allow all distributed energy resources to participate actively in the real-time power market.Of a total of 28 000 customers on Bornholm, at least 2600 residential consumers will participate with flexible demand response to real-time price signals. The participants will be equipped with residential demand response devices/appliances using gateways and “smart” controllers. Installation of the smart solutions will allow real-time prices to be presented to consumers and allow users to pre-program their automatic demand-response preferences, e.g. through different types of electricity price contracts. “Automation” and customer choice is one of the key elements in the EcoGrid EU concept.To make the EcoGrid EU solutions more widely applicable, the market concept will be designed for existing power exchange(s) and power regulation market(s). Because of the test site location on Bornholm, the real-time market concept will first be operational in the Nordic power market system. EcoGrid EU replication activities will ensure that the concept (or part of the solutions) can be adjusted and prepared for implementation in other power systems and regulatory conditions across Europe.