An active demand side of the electricity market – including demand reduction measures and measures to enable flexible consumption – can bring down costs and avoid the need for investment in new power stations and grid infrastructure.
However despite recognition of its value in successive UK government policy documents, the demand side of the electricity market is still not living up to its potential. In a new E3G briefing note, Simon Skillings argues that deeply-ingrained biases are working against demand side resources and in favour of supply side measures, and institutional reform is needed for a demand-side market that truly succeeds.
