Demand response, defined as the shifting of electricity demand, is generally believed to have value both for the grid and for the market: by matching demand more closely to supply, consumers could profit from lower prices, while in a smart grid environment, more renewable electricity can be used and less grid capacity may be needed. However, the introduction of residential demand response programmes to support the development of smart grids that includes renewable generation is hampered by a number of barriers. This paper reviews these barriers and categorises them for different demand programmes and market players. The case study for the Netherlands shows that barriers can be country specific. Two types of demand response programmes have been identified as being the most promising options for households in smart grids: price-based demand response and direct load control, while they may not be beneficial for market players or distribution system operators. (C) 2016 The Authors. International Journal of Energy Research Published by John Wiley & Sons Ltd.