Electricity market demand response competition optimizes resource allocation and market operation.
Demand response in electricity markets helps control market power, allocate resources efficiently, and maintain stable market operations. The paper discusses the concept of demand response, reviews its global research and implementation status, and categorizes it based on price and incentives. It highlights the importance of implementing demand response measures and suggests incorporating them into China's power market reform. Learning from other countries' experiences, China should gradually introduce demand response to improve market design and efficiency.