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Residential winter kWh responsiveness under optional time-varying pricing in British Columbia

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  • Woo, C.K.
  • Li, R.
  • Shiu, A.
  • Horowitz, I.

Abstract

A large sample of daily electricity consumption and pricing data are available from a pilot study conducted by BC Hydro in British Columbia (Canada) of its residential customers under optional time-varying pricing and remotely-activated load-control devices for the four winter months of November 2007–February 2008. We use those data to estimate the elasticity of substitution σ, defined as the negative of the percentage change in the peak-to-off-peak kWh ratio due to a 1% change in the peak-to-off-peak price ratio. Our estimates of σ characterize residential price responsiveness with and without load control during cold-weather months. While the estimates of σ sans load control are highly statistically significant (α=0.01), they are less than 0.07. With load control in place, however, these σ estimates more than triple. Finally, we show that time-varying pricing sans load control causes a peak kWh reduction of 2.6% at the 2:1 peak-to-off-peak price ratio to 9.2% at the 12:1 peak-to-off-peak price ratio. Load control raises these reduction estimates to 9.2% and 30.7%.

Suggested Citation

  • Woo, C.K. & Li, R. & Shiu, A. & Horowitz, I., 2013. "Residential winter kWh responsiveness under optional time-varying pricing in British Columbia," Applied Energy, Elsevier, vol. 108(C), pages 288-297.
  • Handle: RePEc:eee:appene:v:108:y:2013:i:c:p:288-297
    DOI: 10.1016/j.apenergy.2013.03.042
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    1. Dupont, B. & Dietrich, K. & De Jonghe, C. & Ramos, A. & Belmans, R., 2014. "Impact of residential demand response on power system operation: A Belgian case study," Applied Energy, Elsevier, vol. 122(C), pages 1-10.
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    7. Di Giorgio, Alessandro & Liberati, Francesco, 2014. "Near real time load shifting control for residential electricity prosumers under designed and market indexed pricing models," Applied Energy, Elsevier, vol. 128(C), pages 119-132.
    8. Woo, C.K. & Sreedharan, P. & Hargreaves, J. & Kahrl, F. & Wang, J. & Horowitz, I., 2014. "A review of electricity product differentiation," Applied Energy, Elsevier, vol. 114(C), pages 262-272.
    9. 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.
    10. Alahäivälä, Antti & Heß, Tobias & Cao, Sunliang & Lehtonen, Matti, 2015. "Analyzing the optimal coordination of a residential micro-CHP system with a power sink," Applied Energy, Elsevier, vol. 149(C), pages 326-337.
    11. Bartusch, Cajsa & Alvehag, Karin, 2014. "Further exploring the potential of residential demand response programs in electricity distribution," Applied Energy, Elsevier, vol. 125(C), pages 39-59.
    12. Klaassen, E.A.M. & Kobus, C.B.A. & Frunt, J. & Slootweg, J.G., 2016. "Responsiveness of residential electricity demand to dynamic tariffs: Experiences from a large field test in the Netherlands," Applied Energy, Elsevier, vol. 183(C), pages 1065-1074.
    13. Sharifi, Ayyoob & Yamagata, Yoshiki, 2016. "Principles and criteria for assessing urban energy resilience: A literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 1654-1677.

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