INERTIA will introduce the Internet of Things/Services principles to the Distribution Grid Control and DSM Operations. It will provide an overlay network for coordination and active grid control, running on top of the existing grid and consisting of distributed and autonomous intelligent Commercial Prosumer Hubs. This way, it will address the present "structural inertia" of DG by introducing more active elements combined with the necessary control and distributed coordination mechanisms. Semantically enhanced DER (generation and consumption) will be the main constituents of the INERTIA active DG framework. DER will constitute active and flexible components carrying contextual knowledge of their local environment. DER will form dynamic clusters comprising self-organized networks of active nodes that will efficiently distribute and balance global and local intelligence. The DER self-organized overlay network will allow for seamless management and control of the active grid and the optimal exploration of single and aggregated prosumer capacity (generation and consumption) to participate in energy balancing and other DG related services. Global Operational & Technical Distrbution Grid parameters will be seamlessly and continuously translated into real-time Local DSM Strategies. INERTIA will offer fine grained control (equivalent or even higher than existing Direct Control Programmes) while also protecting privacy and autonomy on the local level, fully respecting prosumer preferences and needs. INERTIA will promote the efficient integration of flexible demand with distributed generation within the smart grid as the mean to tackle the problems resulting from the continuous and massive integration of distributed intermittent and non-controllable renewable sources. INERTIA will propose viable Business Models for flexible service-oriented contracts distributing potential benefits to all stakeholders involved in the DSM value chain