Dwindling fossil fuel resources and pressures to reduce greenhouse gas emissions will result in a more diverse range of generation portfolios for future electricity systems. Irrespective of the portfolio mix the overarching requirement for all electricity suppliers and system operators is to instantaneously meet demand, to operate to standards and reduce greenhouse gas emissions. Therefore all electricity market participants will ultimately need to use a variety of tools to balance the power system. Thus the role of demand side management with energy storage will be paramount to integrate future diverse generation portfolios. Electric water heating has been studied previously, particularly at the domestic level to provide load control, peak shave and to benefit end-users financially with lower bills, particularly in vertically integrated monopolies. In this paper a number of continuous direct load control demand response based electric water heating algorithms are modelled to test the effectiveness of wholesale electricity market signals to study the system benefits. The results are compared and contrasted to determine which control algorithm showed the best potential for energy savings, system marginal price savings and wind integration. (C) 2012 Elsevier Ltd. All rights reserved.