How to Engage Consumers in Demand Response: A Contract Perspective

Abstract

The Robert Schuman Centre for Advanced Studies (RSCAS), created in 1992 and directed by Brigid Laffan since September 2013, aims to develop inter-disciplinary and comparative research and to promote work on the major issues facing the process of integration and European society.The Centre is home to a large post-doctoral programme and hosts major research programmes and projects, and a range of working groups and ad hoc initiatives. The research agenda is organised around a set of core themes and is continuously evolving, reflecting the changing agenda of European integration and the expanding membership of the European Union. The series of working papers aims at disseminating the work of academics on the above-mentioned energy policy issues. For further information AbstractNowadays, the European electricity systems are evolving towards a generation mix that is more decentralised, less predictable and less flexible to operate. In this context, additional flexibility is expected to be provided by the demand side. Thus, how to engage consumers to participate in demand response is becoming a pressing issue. In this paper, we provide an analytical framework to assess consumers' potential and willingness to participate in active demand response from a contract perspective. On that basis, we present policy recommendations to empower and protect consumers in their shift to active demand response participants.

Prosumption and the distribution and supply of electricity

“…This, though, requires consumers to adapt to differentiated price signals. Prosumers therefore not only need to open up to the communication technology of the smart grid, but also to the incentives of dynamic electricity pricing [38]. This means that it is necessary to integrate flexible demand and supply, in particular at the local level.…”

“…Responding this challenge is no longer a matter of revising current regulatory approaches by improving the price signals in the market [45] or educating the consumer and the prosumer in market participation [38]. Both are needed, but that will probably not be enough to really deal with the challenges of future electricity supply when prosumption has matured.…”

Harnessing the Flexibility of Thermostatic Loads in Microgrids with Solar Power Generation

“…However, the DR potential of this customer segment in demonstration projects has turned out to be lower than expected due to low participation, limited flexibility of resources, large aggregation requirements and prohibitive entrance costs [41][42][43].…”

Exploring perceived control in domestic electricity demand-side response

“…In such a scenario, there will likely be a more important role for demand-side response (DSR), or 'change in electricity consumption patterns in response to a signal ' (Element Energy 2012, 9). This can be used to provide services for suppliers and network operators including portfolio optimisation, congestion management, peak shifting and balancing (He et al 2013). This study focuses on domestic DSR, which is an important sector as it accounts for 30% of total UK electricity demand (DECC 2013) increasing to about 50% during peak times (Ofgem 2010).…”

“…Response to these signals may be mediated to different extents by consumers, which affects the speed, duration and reliability of response. Unmediated direct control signals should allow more rapid and reliable responses, followed by volume and pricing (He et al 2013), although the level of automation in response to price signals can also affect this (Frontier Economics and Sustainability First 2012).…”