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Industrial Flexibility in Europe: Barriers, Enablers, and Future Outlook

Abstract

Demand-side flexibility is increasingly recognised as critical to enabling electrification and supporting Europe’s broader trajectory towards net-zero, yet industrial participation remains limited despite its significant economic and technical potential. This paper provides an analysis of the barriers, enablers, and development paths for industrial flexibility, drawing on cross-sectional evidence from the Horizon Europe project FLEX4FACT. The paper identifies internal constraints such as process limitations, workforce rigidity, and difficulties in quantifying flexibility, as well as external barriers including limited market access for demand units and inadequate tariff design. The paper also presents a progression framework for industrial actors, outlining how flexibility develops over time and cautioning against the risk of stagnation. Finally, the paper outlines the technical, organisational, and regulatory conditions necessary to scale flexibility in Europe. The paper concludes that the main limitation lies not in technical potential, but in the interaction between internal and external conditions, which can be mitigated through targeted enabling factors.

Category

Academic chapter

Language

English

Author(s)

Affiliation

  • SINTEF Industry / SINTEF Manufacturing
  • SINTEF Energy Research / Energy Transition
  • Italy
  • Spain
  • Polytechnic University of Catalonia
  • Fachhochschule Albstadt-Sigmaringen - Hochschule für Technik und Wirtschaft

Year

2026

Publisher

IEEE (Institute of Electrical and Electronics Engineers)

Book

2026 22nd International Conference on the European Energy Market - EEM

ISBN

9798319535542

View this publication at Norwegian Research Information Repository