Dissecting demand response: A quantile analysis of flexibility, household attitudes, and demographics

Aman Srivastava (Corresponding author), Steven Van Passel (Corresponding author), Erik Laes (Corresponding author)

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

Demand response (DR) can aid with grid integration of renewables, ensuring security of supply, and reducing generation costs. However, not enough is known about how residential customers’ perceptions of DR shape their response to such programs. This paper offers a deeper understanding of – and reveals the heterogeneity in – this relationship by conducting a quantile regression analysis of a Belgian DR trial, combining data on response with information on household attitudes towards smart appliances. Results overall suggest that improving response requires subtle shifts in electricity consumption behaviour, which can be achieved through changes in user perceptions. Specifically, if customers are inclined to be flexible, a stronger perception of smart appliances as being beneficial can greatly improve response. With those who are less flexible, the cost of smart appliances is a bigger concern. Thus, when designing DR programs, policymakers should aim to promote modest behaviour changes – so as to minimise inconvenience – in customers, by improving awareness on the benefits of smart appliances. Uptake of such DR programs may be improved by explaining the financial benefits or offering incentives to less flexible population segments. Lastly, improving response among older population segments will require a deeper investigation into their concerns.

LanguageEnglish
Pages169-180
Number of pages12
JournalEnergy Research and Social Science
Volume52
DOIs
StatePublished - 1 Jun 2019

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flexibility
demand
Regression analysis
customer
Costs
Electricity
electricity consumption
consumption behavior
Belgian
costs
regression analysis
incentive
supply

Keywords

  • Demand response
  • Demand side management
  • Electricity
  • Household energy
  • Quantile regression
  • User acceptance

Cite this

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abstract = "Demand response (DR) can aid with grid integration of renewables, ensuring security of supply, and reducing generation costs. However, not enough is known about how residential customers’ perceptions of DR shape their response to such programs. This paper offers a deeper understanding of – and reveals the heterogeneity in – this relationship by conducting a quantile regression analysis of a Belgian DR trial, combining data on response with information on household attitudes towards smart appliances. Results overall suggest that improving response requires subtle shifts in electricity consumption behaviour, which can be achieved through changes in user perceptions. Specifically, if customers are inclined to be flexible, a stronger perception of smart appliances as being beneficial can greatly improve response. With those who are less flexible, the cost of smart appliances is a bigger concern. Thus, when designing DR programs, policymakers should aim to promote modest behaviour changes – so as to minimise inconvenience – in customers, by improving awareness on the benefits of smart appliances. Uptake of such DR programs may be improved by explaining the financial benefits or offering incentives to less flexible population segments. Lastly, improving response among older population segments will require a deeper investigation into their concerns.",
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Dissecting demand response : A quantile analysis of flexibility, household attitudes, and demographics. / Srivastava, Aman (Corresponding author); Van Passel, Steven (Corresponding author); Laes, Erik (Corresponding author).

In: Energy Research and Social Science, Vol. 52, 01.06.2019, p. 169-180.

Research output: Contribution to journalArticleAcademicpeer-review

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