Effective Mechanisms to Increase the Use of Demand-Side Resources
Measures using demand-side resources comprise actions taken on the customer’s side of the meter to change the amount and/or timing of electricity use in ways that will provide benefits to the electricity supply system. Nearly four decades of experience in a number of countries has demonstrated that key changes are necessary to ensure that demand-side resources are fully exploited. This paper describes a relatively small number (14) of the most effective mechanisms for increasing the use of demand-side resources in the electricity sector. Some of these mechanisms aim at integrating demand-side resources into electricity markets. Others aim at increasing the role of demand-side resources in system operations and planning processes. The effectiveness of these mechanisms in any particular region or country will depend on the structure of the electricity sector, and the regulatory regime and system planning processes in place. It is therefore important to take these factors into account when planning the use of any of the mechanisms described in this paper.