The Power of Consumers: On the Interplay Between Consumer-Centric Markets and Energy Justice

As electricity systems undergo a profound transformation characterized by decentralization and the emergence of millions of new electricity consumers, including electric vehicles and heat pumps, the complexity of modern electricity markets is on the rise. This development presents a unique opportunity for consumers to actively participate in electricity markets. To avoid divergent developments, it is essential to comprehensively consider the interplay between electricity market design and energy justice. This chapter identifies main barriers to consumer-centric electricity markets and outlines a modern cycle of energy justice and consumer-centric electricity markets. Consumer-centric electricity markets, which put consumers at the heart, can be a catalyst for energy justice. Conversely, energy justice and its various forms can help design and successfully implement consumer-centric electricity markets aligned with a low-carbon economy and society. Policymakers must address both policy areas cohesively to avoid the emergence of electricity markets that fail to harness justice potentials. Consumer-centric electricity markets have the potential to drive transformative change, making it imperative to empower consumers in this evolving landscape. Now is the time to give power to consumers.