[IEA]：Empowering Customer Choice in Electricity Markets

Introduction

Objective: This information paper discusses how empowering customer choice can enhance the flexibility and efficiency of electricity markets.
Scope: It covers key concepts, experiences, and potential benefits across different regions and market structures.

Demand Response Concepts

Moving from DSM to DR: From traditional demand-side management (DSM) to modern demand response (DR).
Forms of DR: Price-based and incentive-based DR.
Putting Pieces Together: Integrating various components to achieve effective DR.
Benefits: DR can significantly increase power system flexibility and deliver substantial economic and environmental benefits.

Effective Markets for Mobilizing DR and Flexibility

Need for Effective Markets: Markets must be designed to effectively mobilize DR and flexibility.
Key Elements: Transparency, reliability, and affordability are crucial for successful market design.

Demand Response Experiences

Liberalization and Customer Choice: Implementation and experiences in OECD European, North American, and Asia-Pacific regions.
Pricing Issues: Challenges and opportunities in pricing mechanisms.
Advanced Metering Developments: Benefits and costs of advanced metering.
Legal and Regulatory Issues: Key considerations for smart meter deployment.
Customer Choice and Demand Response: Experiences and developments in customer mobility and switching.
Demand Response Programs: Potential and actual demand response programs by customer class.
Market-Based Developments: Advances in market-based approaches to DR.
Integrated Approach: Strategies to accelerate DR implementation.

Demand Response Potential by Customer Class

Small Commercial and Residential: Specific potential and challenges for small customers.
Large Commercial and Industrial: Differentiated potential and strategies for large customers.

Market-Based Demand Response Developments

Bidding Markets: Role of demand response in bidding markets.
Aggregation Companies: Emerging roles and operations of aggregation companies.

Towards an Integrated Strategy

Elements for Success: Key components to develop and accelerate DR.
Potential Benefits: Estimations of actual and potential DR in the Nordic region.
Program Types: Different types of DR programs and their effectiveness by customer class.

Figures: Visual representations of potential opportunities, market efficiencies, and switching experiences.
Tables: Detailed data on customer class elasticity, market choices, smart meter rollouts, and demand response participation.

Summary: The paper highlights the importance of customer choice and demand response in enhancing electricity market efficiency and flexibility.
Recommendations: Recommendations for policymakers and stakeholders to implement effective DR strategies.