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Reducing winter peaks in electricity consumption: A choice experiment to structure demand response programs

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  • Srivastava, Aman
  • Van Passel, Steven
  • Kessels, Roselinde
  • Valkering, Pieter
  • Laes, Erik

Abstract

Winter peaks in Belgian electricity demand are significantly higher than the summer peaks, creating a greater potential for imbalances between demand and supply. This potential is exacerbated because of the risk of outages in its ageing nuclear power plants, which are being phased out in the medium term. This paper conducts a choice experiment to investigate the acceptability of a load control-based demand response program in the winter months. It surveys 186 respondents on their willingness to accept limits on the use of home appliances in return for a compensation. Results indicate that respondents are most affected by the days of the week that their appliance usage would be curtailed, and by the compensation they would receive. The willingness to enroll in a program increases with age, environmental consciousness, home ownership, and lower privacy concerns. The analysis predicts that 95% of the sample surveyed could enroll in a daily load control program for a compensation of €41 per household per year. Thus while an initial rollout among older and more pro-environment homeowners could be successful, a wider implementation would require an explanation of its environmental and financial benefits to the population, and a greater consideration of their data privacy concerns.

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  • Srivastava, Aman & Van Passel, Steven & Kessels, Roselinde & Valkering, Pieter & Laes, Erik, 2020. "Reducing winter peaks in electricity consumption: A choice experiment to structure demand response programs," Energy Policy, Elsevier, vol. 137(C).
    • Handle: RePEc:eee:enepol:v:137:y:2020:i:c:s0301421519307694
    DOI: 10.1016/j.enpol.2019.111183
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    7. Adrian Tantau & András Puskás-Tompos & Laurentiu Fratila & Costel Stanciu, 2021. "Acceptance of Demand Response and Aggregators as a Solution to Optimize the Relation between Energy Producers and Consumers in order to Increase the Amount of Renewable Energy in the Grid," Energies, MDPI, vol. 14(12), pages 1-19, June.
    8. Lehmann, Nico & Sloot, Daniel & Ardone, Armin & Fichtner, Wolf, 2022. "Consumer preferences for the design of a demand response quota scheme – Results of a choice experiment in Germany," Energy Policy, Elsevier, vol. 167(C).
    9. Ali Ghofrani & Esmat Zaidan & Mohsen Jafari, 2021. "Reshaping energy policy based on social and human dimensions: an analysis of human-building interactions among societies in transition in GCC countries," Palgrave Communications, Palgrave Macmillan, vol. 8(1), pages 1-26, December.
    10. Mark Tocock & Dugald Tinch & Darla Hatton MacDonald & John M. Rose, 2023. "Managing the energy trilemma of reliability, affordability and renewables: Assessing consumer demands with discrete choice experiments," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 67(2), pages 155-175, April.
    11. Daiva Stanelyte & Neringa Radziukyniene & Virginijus Radziukynas, 2022. "Overview of Demand-Response Services: A Review," Energies, MDPI, vol. 15(5), pages 1-31, February.

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