Within the Energy Union framework, the European Union (EU) is aiming at transforming the energy systems towards a sustainable, low-carbon and climate-friendly economy, putting consumers at its centre. Buildings play a key role in this transition as, on one hand they are responsible for approximately 40% of energy consumption and 36% of CO2 emissions in the EU and, on the other hand, the potential engagement of consumers through the demand-response mechanisms. To enable this transformation, distribution grids will face news paradigms in the ways they operate relying more on flexibility smart grids with capacity to safely host more renewable energy sources (RES) and integrate new loads, such as power to heat/cold, power to gas/liquid and new technologies, as well as electric vehicles (EVs) while advancing in security of supply and affordability. Therefore, this global picture will demand the generation of a new concept of connected ecosystem between energy system players and consumers. Under this scenario, the project consortium accepted this challenge and offers to develop the “REDREAM Project”, which not only will enable the effective participation of the consumers/prosumers in the energy market, but also will drive a profound change turning traditional company’s value chain into value generation chain, based on a revolutionary Service Dominant Logic paradigm. The main objective of the REDREAM project is to effectively move the consumer (as a residential, industrial and tertiary consumer) participation to the centre of the energy market through an open and co-creative ecosystem where all stakeholders will actively interact. This ambitious challenge will require the collection of demand response tools and services (energy and non-energy) capable of enabling the capacity for the consumers of participating in the energy market through an improvement of predictability of consumption patterns and consumer behaviour.

The increased shares of renewable energy, combined with the rise in distributed generation are profoundly impacting electricity markets and the demand for system flexibility and business models of traditional utilities and distribution companies. This requires a rethinking of the way power sector markets are designed and operated as well as a timely and efficient adaptation of traditional market and operational mechanisms. The recent created clean energy legislation requires that Electricity Markets are created with “active customers/consumers and citizens” and “energy communities”. This new legislation asks for enhanced roles of DSOs and TSOs, particularly for a better coordination among stakeholders, procurement of ancillary services, flexibility, data management and integration of Electric Vehicles and must adapt network access and congestion tariffs & charges (flexibility). Markets must encourage the development of more flexible generation and demand and the elimination of obstacles to market-based pricing, remove regulatory distortions, enable scarcity pricing, interconnection, Demand Side Response and storage. Final customers must be enabled to buy electricity generation from aggregated, multiple power-generating facilities or load from multiple demand response facilities to provide joint offers on the electricity market and be jointly operated in the electricity system. Citizens must be offered competitive prices. BeFlexible aims at increasing energy system flexibility, enhancing cooperation among DSOs and TSOs and easing participation of all energy-related actors through the validation and large-scale demonstration of adapted and proven cross-sectoral services, interoperable platforms for smart grids operation developing further already demonstrated solutions and the creation of required system architecture framework to enable the creation of new business models providing additional value to meet consumers’ needs in compliance with a stable regulatory framework.