Fostering Residential Demand Response through Dynamic Pricing Schemes: A Behavioural Review of Smart Grid Pilots in Europe

Kessels, Kris; Kraan, Carolien; Karg, Ludwig; Maggiore, Simone; Valkering, Pieter; Laes, Erik

doi:10.3390/su8090929

Cited by 51 publications

(50 citation statements)

References 24 publications

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“…However, this result contrasts other findings in the literature. For example, Kessels et al [38] have found that understanding of the tariff is significant for behaviors changes.…”

Section: Discussionmentioning

confidence: 99%

Consumers’ Attitudes towards Surcharges on Distributed Renewable Energy Generation and Energy Efficiency Programs

2017

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Increasing penetration of energy efficiency programs and distributed renewable energy generation has imposed significant challenges for utilities to recoup their large upfront costs. There is a heated debate on what surcharges should be implemented to help the utilities recover their fixed costs; however, very few studies focus on consumers' attitudes regarding this topic. This study surveys about 190 residential consumers throughout the United States in November 2015, investigating their preferences and attitudes towards extra demand charges and volumetric energy price increases. We apply probit models and regress consumers' attitudes on selected socio-demographic and behavioral variables. The results indicate the homeowners are more likely to prefer demand charges when compared to renters. The demographic and behavioral factors impact consumers' perception of bill savings from energy efficiency programs or solar panel installation and also influence how consumers perceive the fairness of utilities recovering revenue losses by increasing volumetric energy price. In this paper, we demonstrate there is preference heterogeneity among consumers and that policy makers should be aware of such preference heterogeneity and apply policy targeting based on the identified demographics and behavioral factors impacting consumer preferences.

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“…However, this result contrasts other findings in the literature. For example, Kessels et al [38] have found that understanding of the tariff is significant for behaviors changes.…”

Section: Discussionmentioning

confidence: 99%

Consumers’ Attitudes towards Surcharges on Distributed Renewable Energy Generation and Energy Efficiency Programs

2017

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“…Some facts support the necessity to have these trends. Firstly, the literature reports some problems in the case of manual control of demand by customers [58]. Secondly, enabling technology improves response and flexibility [29,35].…”

Section: Linkage Between Pdr Economic Model and Pblmmentioning

confidence: 99%

“…Thirdly, ICT is becoming more and more widespread and ICT costs are also falling. In this way, flexibility should be provided by smart appliances to obtain larger and more predictable demand shifts [58,59]. This enabling technology needs some inputs from these observed trends of flexible demand.…”

Section: Linkage Between Pdr Economic Model and Pblmmentioning

confidence: 99%

Integration of Methodologies for the Evaluation of Offer Curves in Energy and Capacity Markets through Energy Efficiency and Demand Response

et al. 2018

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Abstract:The objectives of improving the efficiency, and integration, of renewable sources by are complex in practice and should be linked to an increase of demand-side flexibility. The main challenges to achieving this flexibility are the lack of incentives and an adequate framework. For instance, customers' revenue is usually low, the volatility of prices is high and there is not any practical feedback to customers from smart meters. The possibility of increasing customer revenue could reduce the uncertainty with respect to economic concerns, improving investments in efficiency, enabling technology and thus, engaging more customers in these policies. This objective could be achieved by the participation of customers in several markets. Moreover, Demand Response and Energy Efficiency can share ICT technologies but this participation needs to perform an aggregation of demand. The idea of this paper is to present some methodologies for facilitating the definition and evaluation of energy versus cost curves; and subsequently to estimate potential revenues due to Demand Response. This can be accomplished by models that estimate: demand and energy aggregation; economic opportunities and benefits; impacts on customer convenience; customer feedback and price analysis. By doing so, we would have comprehensive information that can help customers and aggregators to define energy packages and their monetary value with the objective of fostering their market participation.

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“…However, decreasing peak loads and, thereby, using the grid infrastructure more efficiently depend strongly on the involvement of single grid users [44]. Dynamic electricity tariffs can facilitate consumer engagement and behaviour change in form of shifting demand [45]. Yet, in the projects that fall under the Experimentation Decree, dynamic electricity tariffs are only mentioned in three cases.…”

Section: More Efficient Use Of Grid Infrastructure and Involvement Ofmentioning

confidence: 99%

Experimenting with Law and Governance for Decentralized Electricity Systems: Adjusting Regulation to Reality?

Lammers

Diestelmeier

2017

Sustainability

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Moving towards a low-carbon society calls not only for technological innovation, but also for new modes of governance. However, the current legal framework of the electricity sector, and the modes of governance that it establishes, impede innovation in the sector. To overcome this obstacle, in 2015 the Dutch government adopted a Crown decree for experiments with decentralized renewable electricity generation (Experimentation Decree) with the aim to generate insights on how to adjust the legal framework. The question remains whether regulation is being adopted to real-life settings, i.e., which lessons can be learned from experimentally acquired results regarding new modes of governance for decentralized electricity systems? To answer this question we apply an interdisciplinary approach: we investigate which modes of governance are established in the Experimentation Decree (legal research) and which ones are implemented in nine projects (governance research). Under the Decree, associations have to carry out all tasks in the electricity supply chain and can engage in collective generation, peer-to-peer supply and system operation. Other modes of governance, new actors for emerging activities and consumer involvement are limited. We conclude that the Experimentation Decree is too restricted regarding new modes of governance for a decentralized electricity system in real-life settings.

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Fostering Residential Demand Response through Dynamic Pricing Schemes: A Behavioural Review of Smart Grid Pilots in Europe

Cited by 51 publications

References 24 publications

Consumers’ Attitudes towards Surcharges on Distributed Renewable Energy Generation and Energy Efficiency Programs

Consumers’ Attitudes towards Surcharges on Distributed Renewable Energy Generation and Energy Efficiency Programs

Integration of Methodologies for the Evaluation of Offer Curves in Energy and Capacity Markets through Energy Efficiency and Demand Response

Experimenting with Law and Governance for Decentralized Electricity Systems: Adjusting Regulation to Reality?

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