Demand response participation in wholesale markets is an important building block in a profound transformation of electricity systems in the United States and Europe. Technical and economic innovations, supported by governmental policies, are moving electricity systems toward smart grids that integrate generation, transmission and distribution in a more networked, environmentally responsible and efficient manner, incorporating distributed energy resources and delivering benefits for utilities and consumers. As one component of smart grids, consumers, utilities and regional grid operators may benefit from more use of demand response programmes that reduce peak power consumption and market price spikes, balance intermittency of renewables and achieve greater grid efficiency and reliability.

Document Type

Book Chapter

Publication Date