The Dutch electricity network is shifting from a centralized, unidirectional system to a decentralized, bidirectional one, driven by renewable energy integration and increased electrification. This transition poses challenges, particularly low-voltage grid congestion. The study investigates the role of smart appliances in mitigating congestion through demand response initiatives. It identifies regulatory uncertainty, insufficient financial incentives, and lack of standardized communication protocols as barriers to adoption. Using qualitative interviews and Critical Transactions Theory, the research recommends regulatory intervention, direct load control, and unified communication standards to enhance grid resilience. Future research should incorporate social factors and assess standards for smart appliances.