Consumer demand for time of use electricity tariffs: A systematized review of the empirical evidence

Nicolson, Moira; Fell, Michael; Huebner, Gesche M.

doi:10.1016/j.rser.2018.08.040

Cited by 117 publications

(54 citation statements)

References 30 publications

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“…Information on consumers' acceptance of TOU tariffs is limited. Nicolson et al [7] found in their meta-analysis covering 27 studies (66 measures) a consensus in the literature that TOU tariffs are less preferred than fixed rate tariffs. While Nicolsen et al [6] found that 39% of their British respondents state that they are willing to switch to a "smart" TOU tariff.…”

Section: Literature Reviewmentioning

confidence: 99%

“…The few studies [6][7][8][9][10][11][12][13][14][15][16][17][18] investigating the potential effectiveness of TOU tariffs provide evidence that these tariffs reduce consumers' utility. A drawback of the available studies is, however, that either samples are restricted to certain consumer groups or sample sizes are too low to derive general conclusions.…”

Section: Introductionmentioning

confidence: 99%

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Consumers’ Willingness to Accept Time-of-Use Tariffs for Shifting Electricity Demand

2020

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Time-of-use (TOU) electricity tariffs represent an instrument for demand side management. By reducing energy demand during peak times, less investments in otherwise necessary, costly, and CO2 intensive redispatch would be required. We use a choice experiment (CE) to analyze private consumers’ acceptance of TOU tariffs in Germany. In our CE, respondents choose between a fixed rate tariff and two TOU tariffs that differ by peak time scheme and by a control of appliances’ electricity consumption during that time. We use a mixed logit model to account for taste heterogeneity. Moreover, investigating decision strategies, we identify three different strategies that shed light on drivers of unobserved taste heterogeneity: (1) Always choosing the status quo, (2) always choosing the maximum discount, and (3) choosing a TOU tariff but not always going for the maximum discount. Overall, about 70% of our 1398 respondents would choose a TOU tariff and shift their electricity demand, leading to a decline in energy demand during peak times. Rough estimates indicate that this would lead to significant savings in electricity generation, avoiding up to a mid to large-sized fossil-fuel power plant.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Consumers’ Willingness to Accept Time-of-Use Tariffs for Shifting Electricity Demand

2020

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“…The main objective of this PRISMA statement is to address researchers in the selection of systematic review articles, guaranteeing the quality of the process. Many previous studies of different research categories have used the PRISMA statement to collect an exhaustive literature review [7][8][9][10][11]. In our case, the general proposed methodology based on the PRISMA statement has two main processes: systematic review and meta-analysis.…”

Section: Proposed Methodologymentioning

confidence: 99%

Categorization and Analysis of Relevant Factors for Optimal Locations in Onshore and Offshore Wind Power Plants: A Taxonomic Review

Gil-García

García-Cáscales

Fernández‐Guillamón

et al. 2019

JMSE

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Wind power is widely considered to be a qualified renewable, clean, ecological and inexhaustible resource that is becoming a leader in the current energy transition process. It is a mature technology solution that was quickly developed and has been massively integrated into power systems in recent years. Indeed, a remarkable number of renewable integration policies have been promoted by different governments and countries. With the aim of maximizing the power given by wind resources, the locations of both onshore and offshore wind power plants must be optimized following a sort of different criteria. Under this scenario, a number of factors and decision criteria in the evaluation and selection of locations can be identified. Moreover, the relevant wind power increasing in the power generation mix is addressed, along with a standardization of factors and decision criteria in the optimization and selection of such optimal locations. In this context, this paper describes a systematic review and meta-analysis combining most of the contributions and studies proposed during the last decade. Thus, our aim is focused on reviewing and categorizing all factors to be considered for optimal location estimation, pointing out the differences among the selected factors and the decision criteria for onshore and offshore wind power plants. In addition, our review also includes an analysis of the representative key indicators for the contributions, such as the annual frequency of publications, geographical classification, analysis by category, evaluation method and determining factors.

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“…The question regarding consumers' willingness-to-shift is also a choice problem, comprising, in our case, of three alternative options: not willing to shift, willing to shift to early morning (0:01~7:00) and willing to shift to late night (20:01~0:00). Even though there are other approaches, such as simple descriptive statistics (Demski et al 2013;Tjørring et al 2018) and ordinary least squares regression analysis (M. L. Nicolson et al 2018), that have been applied in some previous studies, those approaches are not able to represent consumers' preferences for multiple options in parallel, in order to compare their choice preferences on the same statistical basis. Furthermore, the constructed MNLMs can estimate the probability of consumers' choices based on their multiple characteristics.…”

Section: Multinomial Logistic Modelmentioning

confidence: 99%

Investigating UK consumers’ heterogeneous engagement in demand-side response

Keppo

Xenitidou

et al. 2020

Energy Efficiency

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Demand-side response (DSR), the incentivised time-shifting of energy use by consumers away from peak times, is regarded as a potentially effective measure to balance electricity supply and demand. This will be even more important in the low-carbon energy system of the future, with a high share of nondispatchable power, such as variable renewable energy and nuclear power. Most DSR programmes require consumers' active engagement in shifting end-use activities. Previous studies have, however, rarely revealed sociodemographic factors influential for consumers' willingness-to-shift specific end-use activities. This study thus aims to fill this research gap and, using a multinomial logistic model to analyse a nationwide survey, identify factors influential for DSR-related decisions. The nationwide survey for 1004 respondents was carried out to collect data about consumers' willingness-to-shift their daily activities. We focused on the activities that constitute the major part of domestic energy consumption, i.e. cooking, dish-washing, entertainment, heating, laundry and showering. According to the results, consumers' original timing of the end-use activities, sociodemographic factors, ownership of specific appliances and level of concern for energy-saving are influential for their willingness-to-shift activities. These findings can not only help policymakers make more targeted DSR promotion plans but also help to improve broader modelling tools to better consider consumers' willingness-to-shift their demand.

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Consumer demand for time of use electricity tariffs: A systematized review of the empirical evidence

Cited by 117 publications

References 30 publications

Consumers’ Willingness to Accept Time-of-Use Tariffs for Shifting Electricity Demand

Consumers’ Willingness to Accept Time-of-Use Tariffs for Shifting Electricity Demand

Categorization and Analysis of Relevant Factors for Optimal Locations in Onshore and Offshore Wind Power Plants: A Taxonomic Review

Investigating UK consumers’ heterogeneous engagement in demand-side response

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