A systematic review on varieties, effectiveness and determinants of consumer engagement in the context of electricity market reforms from a European-Asian comparative perspective

Engaging consumers to improve demand flexibility and cost efficiency of electricity systems through electricity market reforms (EMRs) is crucial for energy transitions. However, there is a lack of a systematic review on the effectiveness and determinants of consumer engagement across different national reform contexts. Focusing on three key approaches to consumer engagement: prosuming, engaging in Demand Response (DR) programs, and switching suppliers, this review paper systematically reviews the effectiveness of the approaches, motivations and barriers shaping consumer engagement in the context of EMRs through a European-Asian comparative perspective.

This systematic review of 232 studies published between 1990 to 2024 reveals that the European electricity markets showed more advanced liberalized and mature stage of EMRs with deeper consumer engagement than the Asian markets. Common determinants of engagement exist in both markets from economic, market, social, and technological dimensions, whilst institutional factors played different roles. Europe's institutional innovative framework, including clear market rules and national policy support, has enabled higher consumer engagement. In contrast, many Asian markets face institutional barriers, such as inadequate long-term planning, limited policy change, and local government protectionism, which constrain the engagement.

The paper concludes with a research agenda emphasizing institutional innovations, pricing reforms, and the cultivation of social norms that facilitate consumer engagement within the framework of EMRs.