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Residential End-use Electricity Demand: Implications for Real Time Pricing in Sweden

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  • Mattias Vesterberg and Chandra Kiran B. Krishnamurthy

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 2-4% reduction in total daily cost from shifting load up to five hours ahead, indicating small incentives for households (and retailers) to adopt dynamic pricing of electricity.

Suggested Citation

  • Mattias Vesterberg and Chandra Kiran B. Krishnamurthy, 2016. "Residential End-use Electricity Demand: Implications for Real Time Pricing in Sweden," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
    • Handle: RePEc:aen:journl:ej37-4-vesterberg
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    Cited by:

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    5. Vesterberg, Mattias, 2017. "The effect of price on electricity contract choice," Umeå Economic Studies 941, Umeå University, Department of Economics.
    6. Gauthier Lanot & Mattias Vesterberg, 2019. "An empirical model of the decision to switch between electricity price contracts," Journal of Business Analytics, Taylor & Francis Journals, vol. 2(1), pages 24-46, January.
    7. Yuriy Leonidovich Zhukovskiy & Margarita Sergeevna Kovalchuk & Daria Evgenievna Batueva & Nikita Dmitrievich Senchilo, 2021. "Development of an Algorithm for Regulating the Load Schedule of Educational Institutions Based on the Forecast of Electric Consumption within the Framework of Application of the Demand Response," Sustainability, MDPI, vol. 13(24), pages 1-26, December.
    8. Brännlund, Runar & Vesterberg, Mattias, 2021. "Peak and off-peak demand for electricity: Is there a potential for load shifting?," Energy Economics, Elsevier, vol. 102(C).
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    11. Manuel Frondel and Gerhard Kussel, 2019. "Switching on Electricity Demand Response: Evidence for German Households," The Energy Journal, International Association for Energy Economics, vol. 0(Number 5).
    12. Pretto, Madeline, 2021. "Tail-risk Comprehension and Protection in Real-time Electricity Pricing : Experimental Evidence," Warwick-Monash Economics Student Papers 25, Warwick Monash Economics Student Papers.
    13. Correia-da-Silva, João & Soares, Isabel & Fernández, Raquel, 2020. "Impact of dynamic pricing on investment in renewables," Energy, Elsevier, vol. 202(C).
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    16. Vesterberg, Mattias, 2016. "The hourly income elasticity of electricity," Energy Economics, Elsevier, vol. 59(C), pages 188-197.
    17. Andersen, F.M. & Gunkel, P.A. & Jacobsen, H.K. & Kitzing, L., 2021. "Residential electricity consumption and household characteristics: An econometric analysis of Danish smart-meter data," Energy Economics, Elsevier, vol. 100(C).
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