For anyone unfamiliar with OpenADR, the concept was conceived during the 2000/2001 energy crisis in California. California’s energy needs exceeded the available resources on several occasions during this period. At the time, the only fast and reliable response available to grid operators was to completely shut down parts of cities and counties for periods of time. The blackouts were cycled around within the affected areas, termed as rolling blackouts. As a result, the OpenADR standard was created and quickly became the key standard for demand-side management across the United States.

Since then, we have seen demand for OpenADR grow further afield, with the first requirements outside of the U.S. in Japan, followed by Korea and China. New Zealand followed in the late 2010s and most recently Europe, particularly in the United Kingdom. This rapid adoption emphasizes the importance of standards and the crucial role they play in enabling efficient demand response within energy management systems. By mandating standards, governments and regulatory bodies support the need for compliance.

The standard is maintained by the OpenADR Alliance, a California-based non-profit organization. The Alliance now has three versions of the standard, OpenADR 2.0a, 2.0b (2012 & 2013) and 3.0, first published in 2023. We recently launched the first certified OpenADR 3.0 products into the market from member companies, EVoke Systems, E.ON Energy Networks and Universal Devices. The Alliance now has over 200 members worldwide, 300+ certified products and is working with 10 approved test facilities around the world.

Over the last 25 years, we’ve seen a growing number of challenges facing the energy sector, driven by more extreme weather events like wildfires and hurricanes, the rapid adoption of electric vehicles (EVs) and electric appliances and the rise of power-hungry artificial intelligence (AI) applications. As a result, the growth in energy demand and consumption continues to be a major concern.

In a fast-changing energy world, industry standards like OpenADR are the key to unlocking the grid’s full energy potential. Here, we look at some of the more interesting trends taking shape in the industry:

1. Electric appliances as grid resources
2. The power of Virtual Power Plants
3. Power-hungry data centres: the role of microgrids
4. Flexibility through EV charging and vehicle-to-grid applications

Grid-interactive buildings and homes

The use of electric appliances as grid resources has been accelerated by connectivity and the use of standards. There is a need for a smart and flexible electricity system that decarbonizes economies and, most importantly, helps manage energy demand and balance the grid at peak times.

Grid-interactive buildings are one interesting trend. These solutions can help transform energy management, offering greater flexibility and efficiency by balancing and optimizing energy loads to reduce the strain on the grid. This type of intelligent building can adapt energy use dynamically, reducing demand when the grid is under stress and storing and drawing power from a range of distributed energy resources (DER) like solar and battery storage.

But can this idea be taken a step further by treating electric appliances as potential grid resources? Smart homes and smart automation are nothing new of course. But with the advances in technology, increased grid connectivity and compensation and the integration of AI for smarter automation, the market is set to explode.

Recently, Geo (Green Energy Options), a UK-based energy tech firm, has developed a groundbreaking open specification that enables OpenADR and Matter to work together, enabling mass-market, consumer-friendly grid demand response solutions. Published in March 2025, with independent input from the OpenADR Alliance and the Connectivity Standards Alliance (CSA), the specification provides a clear framework for energy flexibility.

Demand Side Response Service Providers (DSRSPs) and Energy Smart Appliance (ESA) manufacturers can use this bridging specification to unlock the inherent energy flexibility that’s contained in household white goods appliances, EV charging, water heating, electric heating, solar and battery storage systems.

Utilities and energy flexibility service providers have been using the OpenADR protocol for over 20 years to connect homes and businesses to the grid. Using OpenADR, the grid understands how these ESAs can be flexed; sending incentive signals to use energy at different times and help balance the grid.

The strength of virtual power plants

Balancing energy supply and demand is critical to maintaining a reliable electricity grid. So, can Virtual Power Plants (VPPs) offer an innovative and alternative solution to traditional approaches, allowing local grid operators to use energy flexibility to ensure a more stable electricity supply?

A key driver is the emergence of falling battery storage costs, increasing the capability of VPPs as grid resources. First generation implementation for OpenADR in the VPP market was through rooftop solar and storage. Companies are now developing EV charging management systems that support flexible pricing, solar system integration and AI-based predictive load balancing.

The power industry is starting to look at aggregation of resources, even at a residential level. For this reason, VPPs are attracting attention. Drawing on the capacities of a range of energy sources, from wind turbines and PVs to home batteries and EVs, the cost of implementing VPPs can be much lower when compared to traditional power sources but offers all the potential for enhanced grid reliability and efficiency.

The OpenADR Alliance is engaging with three of the top 10 manufacturers in the U.S. market by providing insight on how they can engage directly with utilities as grid resources.

A reorganization of the VPP provider market, in the wake of the compensation rule changes in California in 2023, is starting to take shape. OpenADR is part of a VPP project funded by the DOE Connected Communities program. Marin Clean Energy (MCE) will leverage its status as California's first Community Choice Aggregation (CCA), and its work as a load-serving entity (LSE), scheduling coordinator and registered Demand Response Provider (DRP), to demonstrate how CCAs can use VPPs to create new opportunities and value for the buildings they serve, while enhancing grid health and reliability.

Those entering or considering the VPP market are already focusing on the use of advanced technologies and open standards, helping to drive growth. Utilities and energy providers will need to collaborate with others including tech companies and product manufacturers to turn homes, workplaces and communities into VPPs. Governments need to facilitate change through regulation and legislation to realize the full potential for VPPs to change the way we use and optimize energy.

Power-hungry data centres and the role of microgrids

Generating enough power for the demands of AI, cryptocurrency and other power-hungry applications is one of the biggest challenges facing data centres right now. With a power grid already under pressure and in the process of trying to modernize and flex to cope with the huge demands placed on it, the industry needs to rethink the way it adapts to these challenges.

With the rise of AI and the expectation of what it can deliver, the next few years are likely to see a significant rise in the number and size of data centres, with serious consequences for the energy sector. At the same time, technology firms are under growing pressure to make data centres more energy efficient and sustainable.

Microgrids could be the answer to providing a more sustainable and efficient energy supply for data centres. While the concept of a microgrid can vary depending on how they are used, it can be defined as a small-scale, localized electrical grid that can operate independently or in conjunction with the main power grid. They can range in size from a university to a single home. From residential to large campuses like Apple in Silicon Valley, microgrids are already being used in different scenarios.

The real advantage is in helping overcome grid constraints and improving reliability by managing consumption and maintaining power during grid issues. For data centres that require uninterrupted operation, this ability to deliver resilience is critical.

Sustainability is another key advantage. By integrating renewable energy sources, such as solar or wind power and energy storage, microgrids can reduce their footprint, while in terms of cost, they can reduce operational costs by utilizing local power generation and demand-response strategies.

The bottom line is that the data centres will need a very high continuous supply of power, and microgrids offer options for a more resilient and responsive energy infrastructure. Decentralized power through a network of microgrids could help dynamically manage power loads and optimize renewable energy sources – especially as demands on the grid grow as we head towards an AI-powered future.

Flexibility through managed EV charging

The rapid growth of the EV market has spurred cooperation between automotive OEMs and the electric utility industry. Electrification represents a once-in-a-generation transformation of both the automotive and the utility sectors. We are already seeing a significant number of charging programs using standards like OpenADR and the Open Charge Point Protocol (OCPP), an open standard communication protocol for EV charging stations.

The industry is still developing, and we are expecting more innovation to happen. Aside from the basic communication protocol, EV charging includes a number of systems. From the plug to the customer interface, these systems must become more standardized in their roles and interactions to provide a customer-friendly and scalable solution for the future.

Governments around the world are investing in EV charging infrastructure, pushing it as part of their net zero goals and climate change agendas.

With this growing demand for electrification, EVs and charge points, it means greater demand for electricity. If everyone goes electric, grid capacity is placed under huge strain, particularly when people want to charge their cars at home or work during peak hours. Forecasting peak use and balancing this extra demand for power will be critical as the rollout of charging infrastructure escalates.

Electricity suppliers will need to incentivize consumers to charge their vehicles outside of peak periods by offering lower rates and other incentives. Showing customers that they can save both money and energy will be important while communicating the benefits in a timely and convenient way is critical.

Standardized information exchange on pricing signals, energy consumption and capacity are the basis for effective load control, enabling suppliers to respond flexibly to fluctuating demand. DSOs need to communicate this information to customers, quickly and securely using open communications standards. These standards will be critical to the success of energy flexibility developments like vehicle-to-grid (V2G) and ensuring the infrastructure is fit for purpose.

There are also lifecycle implications for EV batteries that need to be addressed as bi-directional charging can lead to degradation and shortening of battery life.

The issue of power quality also needs to be addressed. With more high-powered invertors pushing power into the grid, it could raise questions about power quality that is not up to standard and may require periodic grid code adjustments.

But such initiatives will only be a success if customers want it. While the industry is looking to educate users about the benefits of these types of programs, we need everyone involved, from energy suppliers and automotive companies to the government, to help promote energy flexibility initiatives.

It will be interesting to see how these trends develop further, and particularly the role of open standards in supporting future energy flexibility developments.