The Power to Choose

Demand Response in Liberalised Electricity Markets

International Energy Agency

Highly volatile electricity prices are becoming a more frequent and unwanted characteristic of modern electricity wholesale markets. But low demand elasticity, mainly the result of a lack of incentives and consumers’ inability to control demand, means that consumer behaviour is not reflected in the cost of energy.

This study analyses the impact of price-responsive demand and shows how pricing, policy and technology can be used to inform consumer behaviour and choice.