A European Commission decision to approve a French demand response mechanism proposal is based on two main criteria, the mechanism’s positive impact on energy investments and the amount of time power stations are required to operate.

The demand response mechanism contributes to the security of supply, can help avoid the construction of new power stations and support the maintenance of existing facilities.

On a longer-term basis, until 2030, France’s demand response mechanism replaces the need for the construction of new flexible power stations while, in the short term, until 2023, the mechanism may encourage the termination of carbon-fired electricity generation, in accordance with an energy plan announced by France’s energy ministry. Subsequently, France’s demand response mechanism is expected to positively impact France’s electricity generation mix.

It is generally more environmentally friendly to reduce consumption than to produce additional electricity, and the mechanism can render the construction of additional power plants unnecessary.

The mechanism also promises to favorably impact the amount of time power stations need to operate as demand response operators may be able to react more quickly than electricity generators.