A growing population or economy can increase demand for electricity (represented by the demand model). In response, electricity supply is increased (represented by the supply model). However, this increase may affect the price of electricity, which in turn may influence demand (e.g. higher prices will incentivize greater energy efficiency).
By integrating electricity supply and demand, we can also analyze the impact of smart-grid technologies. For example, how might coordinating electricity demand with renewable electricity generation facilitate greenhouse gas reductions?