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Residential End use electricity demand and the implications for real time pricing in Sweden

Author

Listed:
  • Vesterberg, Mattias

    (Department of Economics, Umeå School of Business and Economics)

  • Kiran B. Krishnamurthy, Chandra

    (Department of Economics, Umeå School of Business and Economics)

Abstract

Using a unique and highly detailed data set on energy consumption at the appliance-level for 200 Swedish households, seemingly unrelated regression (SUR)-based end-use specific load curves are estimated. The estimated load curves are then used to explore possible restrictions on load shifting (e.g. the office hours schedule) as well as the cost implications of different load shift patterns. The cost implications of shifting load from “expensive” to “cheap” hours, using the Nord pool spot prices as a proxy for a dynamic price, are computed to be very small; roughly 2-5% reduction in total daily cost from shifting load up to seven hours ahead, indicating small incentives for households (and retailers) to adopt dynamic pricing of electricity. Our results have important implications for Swedish energy policy, in particular for the Swedish government’s stated goal of real-time pricing.

Suggested Citation

  • Vesterberg, Mattias & Kiran B. Krishnamurthy, Chandra, 2014. "Residential End use electricity demand and the implications for real time pricing in Sweden," Umeå Economic Studies 903, Umeå University, Department of Economics, revised 15 Apr 2015.
    • Handle: RePEc:hhs:umnees:0903
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    Cited by:

    1. Gołębiowska, Bernadeta & Bartczak, Anna & Budziński, Wiktor, 2021. "Impact of social comparison on preferences for Demand Side Management in Poland," Energy Policy, Elsevier, vol. 149(C).
    2. Broberg, Thomas & Persson, Lars, 2016. "Is our everyday comfort for sale? Preferences for demand management on the electricity market," Energy Economics, Elsevier, vol. 54(C), pages 24-32.
    3. Bernadeta Gołębiowska & Anna Bartczak & Wiktor Budziński, 2019. "Impact of social comparison on DSM in Poland," Working Papers 2019-10, Faculty of Economic Sciences, University of Warsaw.

    More about this item

    Keywords

    Direct Metering; Residential Electricity Demand; Real time electricity pricing;
    All these keywords.

    JEL classification:

    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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