Beyond energy savings: The necessity of optimising smart electricity systems with resource efficiency and coherent waste policy in Europe

European Union (EU) law currently poses energy efficiency requirements which could be achieved in part by using demand side response (DSR). This includes the use of storage and smart appliances. However, such means are not stimulated in the electricity market(s) as there is insufficient demand for flexibility from these appliances. This originates from the current lack of value for flexibility, and, consequently, of incentives for investing in electric and electronic equipment (EEE) able to provide it. One solution could be to include ‘smartness’ in the design and labelling of appliances. This article introduces the idea of expanding already existing legal instruments - the energy labelling and ecodesign frameworks – to include the ‘flexibility potential’ of household EEE. This would link regulation for such equipment to the requirements of a more efficient electricity system and allow for standards and methods to assess potential system efficiency gains to be created, and ideally, a market for the production and sale of equipment providing DSR. Ultimately, it would contribute to increased efficiency of EEE and especially of the electricity system. Considering that energy and resource efficiency are priorities in EU law and policy, the article proposes a ‘full-chain approach’ that expands the concept of lifecycle of household EEE to include their potential to interact with the local electricity network by means of DSR. The article studies EU policy instruments addressing energy and resource efficiency, and EU legislation on the electricity system with a focus on household EEE and their potential to increase energy efficiency by DSR.