Definition of Consumer in Electricity Markets

Understanding the role of consumers is essential in economics, finance, and market operations.

Consumers drive demand, influence market dynamics, and impact resource allocation. In the context of electricity markets, consumers play a pivotal role in determining energy demand patterns, influencing prices, and shaping the development of energy policies and technologies.

As the grid faces unprecedented strain from renewables and emerging technologies reshape consumer habits, long-standing concepts must evolve.

This article explores an updated definition of ‘consumer’ that addresses the challenges of a rapidly changing energy landscape.

We reach this definition through a combination of mathematical models and references to economic, finance, scientific, and technical literature.