As the global climate crisis has intensified and the transition toward 2050 carbon neutrality has accelerated, energy policy has been required to shift from supply-oriented expansion to demand-side efficiency. In Seoul, 86% of total greenhouse gas emissions originate from the energy sector, and 68% of these emissions come from the building and residential sectors, making demand management in daily life a core strategy for achieving carbon neutrality. In this context, Seoul first introduced DR in 2021 through the Magok Plus-Energy Town pilot project targeting apartment complexes, and subsequently expanded it into the official “Residential DR” program in 2023. However, low AMI deployment, limited participation, the apartment-centered operational structure, the involvement of multiple agencies, and fixed incentives that provide insufficient motivation have hindered the program’s broader adoption.
This study aimed to identify policy and technical improvements that could enhance citizen participation and program effectiveness by analyzing the operational status and performance of Seoul’s Residential DR system. Based on the national DR framework and Seoul’s performance data, the study proposed short-term measures to improve operational efficiency and expand participation. These measures included establishing a Seoul-specific dispatch system reflecting local load characteristics, introducing weekend and weather-linked DR, adopting a reduction-rate-based incentive structure, simplifying procedures, integrating publicity efforts, and improving program naming.
In the mid- to long-term, the study suggested establishing a unified Residential DR platform to integrate enrollment, data linkage, dispatch, performance verification, and settlement, enhancing information services through linkage with aggregators’ platforms, and expanding the program from electricity-only DR to multi-energy DR using AMI-based datasets for electricity, hot water, water, heating, and gas. The study also identified the need to introduce DR for common areas in apartment complexes, expand participation across diverse housing types, and link DR reduction volumes with the forthcoming building greenhouse-gas cap system and voluntary carbon markets such as K-VER.
In the short term, these improvements are expected to increase participation, enhance program understanding, and strengthen the effectiveness of DR dispatch. In the mid- to long-term, platform development and systemic advancement will structurally improve city-wide energy efficiency, and linking DR reductions with carbon-policy mechanisms will enable Residential DR to serve as a key instrument supporting Seoul’s transition to carbon neutrality.