New perspectives on energy market design: towards a flexible and sustainable user-based model

The Colombian electricity market is at a turning point, transitioning from a traditional centralized system to a dynamic, decentralized, and user-centric model. This article presents a renewed vision of market design in which the end user evolves from a passive consumer to an active “prosumer”, empowered to generate, store, and trade energy. We outline seven fundamental pillars of a user-centered market design – including demand response, distributed resources, peer-to-peer exchange, digitalization through AI and smart grids, and integrative regulatory frameworks – and propose a framework for incorporating these elements. Key technological enablers (such as smart metering, energy management platforms, and AI analytics) and regulatory adaptations (for dynamic pricing, market integration, and participant incentives) are examined. The discussion highlights how an active user role can increase flexibility, resilience, and sustainability in the power system. We also address the social, environmental, and regulatory challenges inherent in this transformation. The conclusions suggest that by embracing these new perspectives – with the end-user at the core – Colombia can enhance efficiency and reliability while meeting its renewable integration and decarbonization goals. Finally, future work and recommendations are given for implementing pilot programs and adaptive policies to fully realize a flexible, sustainable user-based market model.