In a workshop hosted by RAP and the European Climate Foundation, European programmes director Richard Cowart, provided an in-depth overview of the benefits of demand response in the power sector. Demand response refers to customer loads that can be modulated up or down in real time in response to wholesale market conditions. Mr. Cowart explored the power system benefits of energy efficiency and demand response, such as avoided emissions, line loss reduction, avoided reserves, and “non-energy” benefits, such as health and safety, improved comfort, building durability, and better indoor air quality. As Europe embraces a steadily increasing portion of renewable energy, it is also faced with new challenges and is discovering new opportunities created by smart grids, dynamic pricing, and demand response. Strategic market and regulatory reforms can help the EU overcome the regulatory barriers to implement demand response as a reliable, low-cost resource.