IDEAS home Printed from https://ideas.repec.org/a/eee/rensus/v25y2013icp71-77.html
   My bibliography  Save this article

Residential peak electricity demand response—Highlights of some behavioural issues

Author

Listed:
  • Gyamfi, Samuel
  • Krumdieck, Susan
  • Urmee, Tania

Abstract

Electricity demand response refers to consumer actions that change the utility load profile in a way that reduces costs or improves grid security. The focus of demand response has mainly been on the commercial and big industrial sectors because of the large demand reduction that they can offer to the utility grid operators. Utilities are showing increasing interest in residential demand response (RDR). RDR can be treated as an energy resource which can be assessed and commercially developed, however, there are still some issues that remain to be addressed for RDR to be successful. These include price unresponsiveness of some residential consumers, equity issues and high cost of the metering infrastructure. The aim of this paper is to investigate and present some of the challenges in achieving effective voluntary demand reduction based on a review of residential demand response literature as well as the general residential energy use behaviour literature. The authors propose the use of a hybrid engineering approach using social psychology and economic behaviour models to overcome these challenges and realize the benefits of supply security and cost management.

Suggested Citation

  • Gyamfi, Samuel & Krumdieck, Susan & Urmee, Tania, 2013. "Residential peak electricity demand response—Highlights of some behavioural issues," Renewable and Sustainable Energy Reviews, Elsevier, vol. 25(C), pages 71-77.
  • Handle: RePEc:eee:rensus:v:25:y:2013:i:c:p:71-77
    DOI: 10.1016/j.rser.2013.04.006
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1364032113002578
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.rser.2013.04.006?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Torgeir Ericson, 2006. "Direct load control of residential water heaters," Discussion Papers 479, Statistics Norway, Research Department.
    2. Reiss, Peter C. & White, Matthew W., 2002. "Household Electricity Demand, Revisited," Research Papers 1830, Stanford University, Graduate School of Business.
    3. Aubin, Christophe, et al, 1995. "Real-Time Pricing of Electricity for Residential Customers: Econometric Analysis of an Experiment," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 10(S), pages 171-191, Suppl. De.
    4. Isabelle Huault & V. Perret & S. Charreire-Petit, 2007. "Management," Post-Print halshs-00337676, HAL.
    5. Caves, Douglas W. & Christensen, Laurits R. & Herriges, Joseph A., 1984. "Consistency of residential customer response in time-of-use electricity pricing experiments," Journal of Econometrics, Elsevier, vol. 26(1-2), pages 179-203.
    6. Strengers, Yolande, 2012. "Peak electricity demand and social practice theories: Reframing the role of change agents in the energy sector," Energy Policy, Elsevier, vol. 44(C), pages 226-234.
    7. Filippini, Massimo & Pachauri, Shonali, 2004. "Elasticities of electricity demand in urban Indian households," Energy Policy, Elsevier, vol. 32(3), pages 429-436, February.
    8. Dillman, Don A. & Rosa, Eugene A. & Dillman, Joye J., 1983. "Lifestyle and home energy conservation in the United States: the poor accept lifestyle cutbacks while the wealthy invest in conservation," Journal of Economic Psychology, Elsevier, vol. 3(3-4), pages 299-315, September.
    9. Filippini, Massimo, 1995. "Swiss residential demand for electricity by time-of-use," Resource and Energy Economics, Elsevier, vol. 17(3), pages 281-290, November.
    10. Massimo Filippini, 1995. "Swiss Residential Demand for Electricity by Time-of-Use: An Application of the Almost Ideal Demand System," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 27-40.
    11. Gyamfi, Samuel & Krumdieck, Susan, 2011. "Price, environment and security: Exploring multi-modal motivation in voluntary residential peak demand response," Energy Policy, Elsevier, vol. 39(5), pages 2993-3004, May.
    12. Torriti, Jacopo & Hassan, Mohamed G. & Leach, Matthew, 2010. "Demand response experience in Europe: Policies, programmes and implementation," Energy, Elsevier, vol. 35(4), pages 1575-1583.
    13. Darby, Sarah J. & McKenna, Eoghan, 2012. "Social implications of residential demand response in cool temperate climates," Energy Policy, Elsevier, vol. 49(C), pages 759-769.
    14. Alexander, Barbara R., 2010. "Dynamic Pricing? Not So Fast! A Residential Consumer Perspective," The Electricity Journal, Elsevier, vol. 23(6), pages 39-49, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lopes, Marta A.R. & Henggeler Antunes, Carlos & Janda, Kathryn B. & Peixoto, Paulo & Martins, Nelson, 2016. "The potential of energy behaviours in a smart(er) grid: Policy implications from a Portuguese exploratory study," Energy Policy, Elsevier, vol. 90(C), pages 233-245.
    2. Massimo, Filippini, 2011. "Short- and long-run time-of-use price elasticities in Swiss residential electricity demand," Energy Policy, Elsevier, vol. 39(10), pages 5811-5817, October.
    3. Zhou, Kaile & Yang, Shanlin, 2015. "Demand side management in China: The context of China’s power industry reform," Renewable and Sustainable Energy Reviews, Elsevier, vol. 47(C), pages 954-965.
    4. Yan, Xing & Ozturk, Yusuf & Hu, Zechun & Song, Yonghua, 2018. "A review on price-driven residential demand response," Renewable and Sustainable Energy Reviews, Elsevier, vol. 96(C), pages 411-419.
    5. Cosmo, Valeria Di & O’Hora, Denis, 2017. "Nudging electricity consumption using TOU pricing and feedback: evidence from Irish households," Journal of Economic Psychology, Elsevier, vol. 61(C), pages 1-14.
    6. Ma, Yiqun, 2016. "Demand Response Potential of Electricity End-users Facing Real Time Pricing," Research Report 16019-EEF, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    7. Hobman, Elizabeth V. & Frederiks, Elisha R. & Stenner, Karen & Meikle, Sarah, 2016. "Uptake and usage of cost-reflective electricity pricing: Insights from psychology and behavioural economics," Renewable and Sustainable Energy Reviews, Elsevier, vol. 57(C), pages 455-467.
    8. Laurie Buys & Desley Vine & Gerard Ledwich & John Bell & Kerrie Mengersen & Peter Morris & Jim Lewis, 2015. "A Framework for Understanding and Generating Integrated Solutions for Residential Peak Energy Demand," PLOS ONE, Public Library of Science, vol. 10(3), pages 1-20, March.
    9. Valeria Di Cosmo & Elisa Trujillo-Baute, 2018. "From Forward to Spot Prices: Producers, Retailers and Loss Averse Consumers in Electricity Markets," Working Papers 2018.31, Fondazione Eni Enrico Mattei.
    10. Cappers, Peter A. & Todd-Blick, Annika, 2021. "Heterogeneity in own-price residential customer demand elasticities for electricity under time-of-use rates: Evidence from a randomized-control trial in the United States," Utilities Policy, Elsevier, vol. 73(C).
    11. Boßmann, Tobias & Eser, Eike Johannes, 2016. "Model-based assessment of demand-response measures—A comprehensive literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 57(C), pages 1637-1656.
    12. Torriti, Jacopo, 2013. "The significance of occupancy steadiness in residential consumer response to Time-of-Use pricing: Evidence from a stochastic adjustment model," Utilities Policy, Elsevier, vol. 27(C), pages 49-56.
    13. Ciarreta, Aitor & Espinosa, Maria Paz & Pizarro-Irizar, Cristina, 2023. "Pricing policies for efficient demand side management in liberalized electricity markets," Economic Modelling, Elsevier, vol. 121(C).
    14. Kazutoshi Tsuda & Michinori Uwasu & Keishiro Hara & Yukari Fuchigami, 2017. "Approaches to induce behavioral changes with respect to electricity consumption," Journal of Environmental Studies and Sciences, Springer;Association of Environmental Studies and Sciences, vol. 7(1), pages 30-38, March.
    15. Ramírez-Mendiola, José Luis & Grünewald, Philipp & Eyre, Nick, 2019. "Residential activity pattern modelling through stochastic chains of variable memory length," Applied Energy, Elsevier, vol. 237(C), pages 417-430.
    16. Dana Abi Ghanem & Tracey Crosbie, 2021. "The Transition to Clean Energy: Are People Living in Island Communities Ready for Smart Grids and Demand Response?," Energies, MDPI, vol. 14(19), pages 1-26, September.
    17. Liu, Yingqi, 2017. "Demand response and energy efficiency in the capacity resource procurement: Case studies of forward capacity markets in ISO New England, PJM and Great Britain," Energy Policy, Elsevier, vol. 100(C), pages 271-282.
    18. Jim Lewis & Kerrie Mengersen & Laurie Buys & Desley Vine & John Bell & Peter Morris & Gerard Ledwich, 2015. "Systems Modelling of the Socio-Technical Aspects of Residential Electricity Use and Network Peak Demand," PLOS ONE, Public Library of Science, vol. 10(7), pages 1-21, July.
    19. Yunusov, Timur & Torriti, Jacopo, 2021. "Distributional effects of Time of Use tariffs based on electricity demand and time use," Energy Policy, Elsevier, vol. 156(C).
    20. Sila Kiliccote & Daniel Olsen & Michael D. Sohn & Mary Ann Piette, 2016. "Characterization of demand response in the commercial, industrial, and residential sectors in the United States," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 5(3), pages 288-304, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:rensus:v:25:y:2013:i:c:p:71-77. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.