Demand‐Side Management for a Decentralised and Equitable Energy Transition in Aotearoa New Zealand

TL;DR

This paper explores how to manage electricity demand in New Zealand's shift to a sustainable, decentralized energy system, ensuring fairness and consumer involvement.

Contribution

The paper introduces validated agent-based modeling insights to guide equitable demand-side management policies for residential consumers.

Findings

Decentralized energy systems require careful management to avoid unintended consequences.

Electricity pricing structures and consumer behavior significantly impact energy transitions.

Socioeconomic disparities must be addressed to ensure equitable benefits from distributed energy solutions.

Abstract

Aotearoa New Zealand's shift towards a sustainable, decentralised electricity system will involve local generation, greater consumer empowerment and more active intervention at both local and grid levels. Demand‐side management (DSM) will play a key role in achieving these goals. However, the complexity of electricity demand and the risk of unintended consequences mean decentralisation must be approached with care, considering the interests of all electricity sector participants, including residential consumers from across the socioeconomic spectrum. This paper highlights key considerations for this transition, informed by recent, validated agent‐based modelling research targeted at residential consumers, which should inform policy: (i) behavioural dynamics, (ii) electricity pricing structures, (iii) socioeconomic variations in benefits of distributed generation and storage, (iv) the importance of energy efficiency and (v) consumer trust.

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