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Empowering Customer Choice in Electricity Markets

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  • Douglas Cooke

    (International Energy Agency)

Abstract

Timely and effective deployment of demand response could greatly increase power system flexibility, electricity security and market efficiency. Considerable progress has been made in recent years to harness demand response. However, most of this potential remains to be developed. The paper draws from IEA experience to identify barriers to demand response, and possible enablers that can encourage more timely and effective demand response including cost reflective pricing, retail market reform, and improved load control and metering equipment. Governments have a key role to play in developing and implementing the policy, legal, regulatory and market frameworks needed to empower customer choice and accelerate the development and deployment of cost-effective demand response.

Suggested Citation

  • Douglas Cooke, 2011. "Empowering Customer Choice in Electricity Markets," IEA Energy Papers 2011/13, OECD Publishing.
    • Handle: RePEc:oec:ieaaaa:2011/13-en
    DOI: 10.1787/5kg3n27x4v41-en
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    Citations

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    Cited by:

    1. Klaus Friesenbichler, 2013. "Innovation in the Energy Sector. WWWforEurope Working Paper No. 31," WIFO Studies, WIFO, number 46917.
    2. Bernadeta Gołębiowska & Anna Bartczak & Mikołaj Czajkowski, 2020. "Energy demand management and social norms – the case study in Poland," Working Papers 2020-25, Faculty of Economic Sciences, University of Warsaw.
    3. B. Serebrennikov, 2017. "Price policy and market power of electricity producing companies," Economy and Forecasting, Valeriy Heyets, issue 3, pages 56-68.
    4. Warren, Peter, 2014. "A review of demand-side management policy in the UK," Renewable and Sustainable Energy Reviews, Elsevier, vol. 29(C), pages 941-951.
    5. Ellabban, Omar & Abu-Rub, Haitham, 2016. "Smart grid customers' acceptance and engagement: An overview," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 1285-1298.
    6. Rosane Santos & André Luiz Diniz & Bruno Borba, 2022. "Assessment of the Modeling of Demand Response as a Dispatchable Resource in Day-Ahead Hydrothermal Unit Commitment Problems: The Brazilian Case," Energies, MDPI, vol. 15(11), pages 1-15, May.
    7. Koliou, Elta & Eid, Cherrelle & Chaves-Ávila, José Pablo & Hakvoort, Rudi A., 2014. "Demand response in liberalized electricity markets: Analysis of aggregated load participation in the German balancing mechanism," Energy, Elsevier, vol. 71(C), pages 245-254.
    8. Derya Eryilmaz, Timothy M. Smith, and Frances R. Homans, 2017. "Price Responsiveness in Electricity Markets: Implications for Demand Response in the Midwest," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).
    9. Esmaeili Aliabadi, Danial & Chan, Katrina, 2022. "The emerging threat of artificial intelligence on competition in liberalized electricity markets: A deep Q-network approach," Applied Energy, Elsevier, vol. 325(C).
    10. Carlo Stagnaro, 2017. "Competition and Innovation in Retail Electricity Markets: Evidence from Italy," Economic Affairs, Wiley Blackwell, vol. 37(1), pages 85-101, February.

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