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

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.