Negawatt market

A negawatt-hour is a theoretical unit of energy representing an amount of electricity saved as a direct result of conservation measures. The concept implies that saving a specific amount of energy is functionally equivalent to generating that same amount. The broader term negawatt was popularized by experimental physicist Amory Lovins in 1985, who argued that utility companies should "sell efficiency" rather than just electricity.

The negawatt market refers to the economic valuation and trading of these energy savings. In practical terms, this concept underpins demand response programs and energy efficiency trading schemes. In these systems, consumers can be financially compensated for reducing their consumption during peak loads, effectively "selling" the energy they did not use back to the grid.

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