We’ve had a lot of questions about Open Automated Demand Response (OpenADR), the various versions and how its generally used. So we thought we would write this article.
OpenADR (Open Automated Demand Response) is an international standard that enables secure, automated, and cost-effective demand response (DR) communication. As energy grids become more complex, managing demand fluctuations is critical to maintaining grid stability. OpenADR connects electricity providers, grid operators, and energy users, allowing power consumption to adjust dynamically based on real-time supply and demand.
This prevents blackouts, reduces costs, and supports the integration of renewable energy. It also ensures that distributed energy resources (DERs)—such as solar panels and battery storage—are optimally managed within the grid. Importantly, OpenADR is used to coordinate and facilitate demand response, rather than control it. The International Electrotechnical Commission (IEC) recognised OpenADR as a full standard (IEC 62746-10-1) on 9 January 2019.
OpenADR operates through a structured communication system, using two key components:
This framework enables utilities to automate energy management, making demand response scalable and seamless – and removing the need for manual interventions. It also aligns with smart grid standards, allowing automated energy adjustments to integrate easily with broader grid management strategies.
Flexibility coordinators (aggregators) can use OpenADR to consolidate energy loads across multiple participants, helping to streamline demand response operations. Real-time price signals help businesses and consumers make informed energy decisions to reduce costs.
Aggregators and Flexibility Suppliers play distinct roles in demand response and DER management.
OpenADR 2.0 is the most widely used version of the protocol, with two variations:
OpenADR 2.0a is designed for more straightforward applications, such as small commercial and residential demand response where real-time adjustments are less critical. It offers moderate latency and limited flexibility but is easy to implement for straightforward energy reduction events.
OpenADR 2.0b, with lower latency and greater flexibility, is designed for more advanced and dynamic applications. It’s ideal for utilities requiring real-time energy pricing models.
The latest evolution, OpenADR 3.0, introduces several key advancements:
A US government-backed report recently highlighted how OpenADR 3.0 is evolving demand response into continuous demand flexibility, enhancing energy efficiency.
There are five key steps for any organisation looking to implement OpenADR. First, energy providers must assess their demand response readiness, then choose the appropriate OpenADR version, deploy Virtual End Nodes (VENs), integrate with Energy Management Systems, and finally, track ongoing performance. All OpenADR-enabled devices and systems must obtain OpenADR Certification to ensure seamless interoperability.
Across the globe, OpenADR is widely implemented across various sectors. In commercial buildings, it can control HVAC systems and lighting to reduce energy consumption during peak hours. Industrial facilities leverage OpenADR to manage manufacturing processes and avoid costly peak-time energy rates.
OpenADR is being widely adopted globally for energy management and grid stability. In Europe, it’s becoming the standard for EV charging demand response. Electric utilities in the UK and US are exploring OpenADR for demand response and are successfully helping customers save on energy bills. Across Japan, various reforms are underway to integrate OpenADR into its energy systems, enhancing grid reliability, supporting renewables, and developing virtual power plants.
As New Zealand advances towards a smart grid infrastructure, OpenADR will play a crucial role. Policies supporting demand response and renewable energy will drive further adoption. With more homes and businesses installing solar and battery storage, OpenADR ensures these resources are optimally utilised for grid stability and cost efficiency.
If you manage electricity distribution in New Zealand, OpenADR can help: ✔ Improve energy efficiency ✔ Enhance grid reliability ✔ Reduce operational costs.
As a smart grid standard, OpenADR keeps energy distribution modern, scalable, and adaptable to the evolving energy landscape.
Cortexo actively participates in the following industry organisations.
Contact Cortexo today to learn how FlexSplice allows flexible distributed energy resources to assist with electrification.
