IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v192y2024ics0301421524002684.html
   My bibliography  Save this article

Empowered or enchained? Exploring consumer perspectives on Direct Load Control

Author

Listed:
  • Nilsson, Anders
  • Bartusch, Cajsa

Abstract

Demand Response has become a central focus in policy discussions, attracting heightened attention for its potential key role in fostering enhanced demand flexibility. Direct Load Control (DLC) holds particular promise, requiring reduced consumer involvement compared to strategies relying on manual responses to time-varying pricing. However, the participation rate of residential consumers in DLC programs remains low, emphasizing the need for a more profound understanding of consumers' perspectives on DLC. Drawing from 15 in-depth interviews with Swedish households participating in a program involving direct load control of heat pumps, this study aims to explore the experiences and perceptions of consumers, providing in-depth understanding on factors that may serve as motivators, barriers and enablers for participation. Key findings include: financial benefits and interest in technology were the main motivations for participation; pre-existing knowledge and awareness of energy-related matters shaped consumers’ attitudes to DLC; trust in the service provider was a key enabling factor for participation. The study further suggests that DLC does not inevitably lead to a perceived loss of control among participants, but, if implemented in alignment with their specific conditions, needs and preferences, may also foster a sense of empowerment.

Suggested Citation

  • Nilsson, Anders & Bartusch, Cajsa, 2024. "Empowered or enchained? Exploring consumer perspectives on Direct Load Control," Energy Policy, Elsevier, vol. 192(C).
  • Handle: RePEc:eee:enepol:v:192:y:2024:i:c:s0301421524002684
    DOI: 10.1016/j.enpol.2024.114248
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421524002684
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.enpol.2024.114248?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. Elena Georgarakis & Thomas Bauwens & Anne-Marie Pronk & Tarek AlSkaif, 2021. "Keep it green, simple and socially fair: a choice experiment on prosumers' preferences for peer to peer electricity trading in the Netherlands," Papers 2109.02452, arXiv.org.
    2. Yilmaz, Selin & Xu, Xiaojing & Cabrera, Daniel & Chanez, Cédric & Cuony, Peter & Patel, Martin K., 2020. "Analysis of demand-side response preferences regarding electricity tariffs and direct load control: Key findings from a Swiss survey," Energy, Elsevier, vol. 212(C).
    3. Buchanan, Kathryn & Banks, Nick & Preston, Ian & Russo, Riccardo, 2016. "The British public’s perception of the UK smart metering initiative: Threats and opportunities," Energy Policy, Elsevier, vol. 91(C), pages 87-97.
    4. Newsham, Guy R. & Bowker, Brent G., 2010. "The effect of utility time-varying pricing and load control strategies on residential summer peak electricity use: A review," Energy Policy, Elsevier, vol. 38(7), pages 3289-3296, July.
    5. 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.
    6. Kalkbrenner, Bernhard J. & Yonezawa, Koichi & Roosen, Jutta, 2017. "Consumer preferences for electricity tariffs: Does proximity matter?," Energy Policy, Elsevier, vol. 107(C), pages 413-424.
    7. Olkkonen, Ville & Ekström, Jussi & Hast, Aira & Syri, Sanna, 2018. "Utilising demand response in the future Finnish energy system with increased shares of baseload nuclear power and variable renewable energy," Energy, Elsevier, vol. 164(C), pages 204-217.
    8. Burchell, Kevin & Rettie, Ruth & Roberts, Tom C., 2016. "Householder engagement with energy consumption feedback: the role of community action and communications," Energy Policy, Elsevier, vol. 88(C), pages 178-186.
    9. 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).
    10. Yilmaz, Selin & Chanez, Cédric & Cuony, Peter & Patel, Martin Kumar, 2022. "Analysing utility-based direct load control programmes for heat pumps and electric vehicles considering customer segmentation," Energy Policy, Elsevier, vol. 164(C).
    11. Sridhar, Araavind & Honkapuro, Samuli & Ruiz, Fredy & Stoklasa, Jan & Annala, Salla & Wolff, Annika & Rautiainen, Antti, 2023. "Residential consumer preferences to demand response: Analysis of different motivators to enroll in direct load control demand response," Energy Policy, Elsevier, vol. 173(C).
    12. Gupta, Ruchi & Pena-Bello, Alejandro & Streicher, Kai Nino & Roduner, Cattia & Farhat, Yamshid & Thöni, David & Patel, Martin Kumar & Parra, David, 2021. "Spatial analysis of distribution grid capacity and costs to enable massive deployment of PV, electric mobility and electric heating," Applied Energy, Elsevier, vol. 287(C).
    13. Julien Lancelot Michellod & Declan Kuch & Christian Winzer & Martin K. Patel & Selin Yilmaz, 2022. "Building Social License for Automated Demand-Side Management—Case Study Research in the Swiss Residential Sector," Energies, MDPI, vol. 15(20), pages 1-25, October.
    14. van den Broek, Karlijn L. & Walker, Ian & Klöckner, Christian A., 2019. "Drivers of energy saving behaviour: The relative influence of intentional, normative, situational and habitual processes," Energy Policy, Elsevier, vol. 132(C), pages 811-819.
    15. Farhar, B.C. & Maksimovic, D. & Tomac, W.A. & Coburn, T.C., 2016. "A field study of human factors and vehicle performance associated with PHEV adaptation," Energy Policy, Elsevier, vol. 93(C), pages 265-277.
    16. Ruokamo, Enni & Kopsakangas-Savolainen, Maria & Meriläinen, Teemu & Svento, Rauli, 2019. "Towards flexible energy demand – Preferences for dynamic contracts, services and emissions reductions," Energy Economics, Elsevier, vol. 84(C).
    17. Beckel, Christian & Sadamori, Leyna & Staake, Thorsten & Santini, Silvia, 2014. "Revealing household characteristics from smart meter data," Energy, Elsevier, vol. 78(C), pages 397-410.
    18. Torriti, Jacopo, 2012. "Price-based demand side management: Assessing the impacts of time-of-use tariffs on residential electricity demand and peak shifting in Northern Italy," Energy, Elsevier, vol. 44(1), pages 576-583.
    19. Hargreaves, Tom & Nye, Michael & Burgess, Jacquelin, 2010. "Making energy visible: A qualitative field study of how householders interact with feedback from smart energy monitors," Energy Policy, Elsevier, vol. 38(10), pages 6111-6119, October.
    20. Bartusch, Cajsa & Wallin, Fredrik & Odlare, Monica & Vassileva, Iana & Wester, Lars, 2011. "Introducing a demand-based electricity distribution tariff in the residential sector: Demand response and customer perception," Energy Policy, Elsevier, vol. 39(9), pages 5008-5025, September.
    21. Nolan, Sheila & O’Malley, Mark, 2015. "Challenges and barriers to demand response deployment and evaluation," Applied Energy, Elsevier, vol. 152(C), pages 1-10.
    22. Kirkerud, J.G. & Nagel, N.O. & Bolkesjø, T.F., 2021. "The role of demand response in the future renewable northern European energy system," Energy, Elsevier, vol. 235(C).
    23. Stenner, Karen & Frederiks, Elisha R. & Hobman, Elizabeth V. & Cook, Stephanie, 2017. "Willingness to participate in direct load control: The role of consumer distrust," Applied Energy, Elsevier, vol. 189(C), pages 76-88.
    24. 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.
    25. Zhou, Kaile & Yang, Shanlin, 2016. "Understanding household energy consumption behavior: The contribution of energy big data analytics," Renewable and Sustainable Energy Reviews, Elsevier, vol. 56(C), pages 810-819.
    26. Dütschke, Elisabeth & Paetz, Alexandra-Gwyn, 2013. "Dynamic electricity pricing—Which programs do consumers prefer?," Energy Policy, Elsevier, vol. 59(C), pages 226-234.
    27. Strengers, Yolande, 2010. "Air-conditioning Australian households: The impact of dynamic peak pricing," Energy Policy, Elsevier, vol. 38(11), pages 7312-7322, November.
    28. Bradley, Peter & Coke, Alexia & Leach, Matthew, 2016. "Financial incentive approaches for reducing peak electricity demand, experience from pilot trials with a UK energy provider," Energy Policy, Elsevier, vol. 98(C), pages 108-120.
    29. Hackbarth, André & Löbbe, Sabine, 2020. "Attitudes, preferences, and intentions of German households concerning participation in peer-to-peer electricity trading," Energy Policy, Elsevier, vol. 138(C).
    30. Sridhar, Araavind & Honkapuro, Samuli & Ruiz, Fredy & Stoklasa, Jan & Annala, Salla & Wolff, Annika & Rautiainen, Antti, 2023. "Toward residential flexibility—Consumer willingness to enroll household loads in demand response," Applied Energy, Elsevier, vol. 342(C).
    31. Nilsson, Anders & Lazarevic, David & Brandt, Nils & Kordas, Olga, 2018. "Household responsiveness to residential demand response strategies: Results and policy implications from a Swedish field study," Energy Policy, Elsevier, vol. 122(C), pages 273-286.
    32. Söder, Lennart & Lund, Peter D. & Koduvere, Hardi & Bolkesjø, Torjus Folsland & Rossebø, Geir Høyvik & Rosenlund-Soysal, Emilie & Skytte, Klaus & Katz, Jonas & Blumberga, Dagnija, 2018. "A review of demand side flexibility potential in Northern Europe," Renewable and Sustainable Energy Reviews, Elsevier, vol. 91(C), pages 654-664.
    33. Bradley, Peter & Leach, Matthew & Torriti, Jacopo, 2013. "A review of the costs and benefits of demand response for electricity in the UK," Energy Policy, Elsevier, vol. 52(C), pages 312-327.
    34. Yu, Biying & Sun, Feihu & Chen, Chen & Fu, Guanpeng & Hu, Lin, 2022. "Power demand response in the context of smart home application," Energy, Elsevier, vol. 240(C).
    35. McKenna, Eoghan & Richardson, Ian & Thomson, Murray, 2012. "Smart meter data: Balancing consumer privacy concerns with legitimate applications," Energy Policy, Elsevier, vol. 41(C), pages 807-814.
    36. Yilmaz, S. & Rinaldi, A. & Patel, M.K., 2020. "DSM interactions: What is the impact of appliance energy efficiency measures on the demand response (peak load management)?," Energy Policy, Elsevier, vol. 139(C).
    37. Xu, Xiaojing & Chen, Chien-fei & Zhu, Xiaojuan & Hu, Qinran, 2018. "Promoting acceptance of direct load control programs in the United States: Financial incentive versus control option," Energy, Elsevier, vol. 147(C), pages 1278-1287.
    38. Tayal, Dev & Evers, Uwana, 2018. "Consumer preferences and electricity pricing reform in Western Australia," Utilities Policy, Elsevier, vol. 54(C), pages 115-124.
    39. Parrish, Bryony & Heptonstall, Phil & Gross, Rob & Sovacool, Benjamin K., 2020. "A systematic review of motivations, enablers and barriers for consumer engagement with residential demand response," Energy Policy, Elsevier, vol. 138(C).
    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. Sridhar, Araavind & Honkapuro, Samuli & Ruiz, Fredy & Stoklasa, Jan & Annala, Salla & Wolff, Annika, 2024. "Residential consumer enrollment in demand response: An agent based approach," Applied Energy, Elsevier, vol. 374(C).
    2. Sridhar, Araavind & Honkapuro, Samuli & Ruiz, Fredy & Stoklasa, Jan & Annala, Salla & Wolff, Annika & Rautiainen, Antti, 2023. "Residential consumer preferences to demand response: Analysis of different motivators to enroll in direct load control demand response," Energy Policy, Elsevier, vol. 173(C).
    3. Julien Lancelot Michellod & Declan Kuch & Christian Winzer & Martin K. Patel & Selin Yilmaz, 2022. "Building Social License for Automated Demand-Side Management—Case Study Research in the Swiss Residential Sector," Energies, MDPI, vol. 15(20), pages 1-25, October.
    4. Sridhar, Araavind & Honkapuro, Samuli & Ruiz, Fredy & Stoklasa, Jan & Annala, Salla & Wolff, Annika & Rautiainen, Antti, 2023. "Toward residential flexibility—Consumer willingness to enroll household loads in demand response," Applied Energy, Elsevier, vol. 342(C).
    5. Yilmaz, Selin & Chanez, Cédric & Cuony, Peter & Patel, Martin Kumar, 2022. "Analysing utility-based direct load control programmes for heat pumps and electric vehicles considering customer segmentation," Energy Policy, Elsevier, vol. 164(C).
    6. Calver, Philippa & Simcock, Neil, 2021. "Demand response and energy justice: A critical overview of ethical risks and opportunities within digital, decentralised, and decarbonised futures," Energy Policy, Elsevier, vol. 151(C).
    7. Nikolas Schöne & Kathrin Greilmeier & Boris Heinz, 2022. "Survey-Based Assessment of the Preferences in Residential Demand Response on the Island of Mayotte," Energies, MDPI, vol. 15(4), pages 1-30, February.
    8. Yilmaz, Selin & Xu, Xiaojing & Cabrera, Daniel & Chanez, Cédric & Cuony, Peter & Patel, Martin K., 2020. "Analysis of demand-side response preferences regarding electricity tariffs and direct load control: Key findings from a Swiss survey," Energy, Elsevier, vol. 212(C).
    9. Patrick Ludwig & Christian Winzer, 2022. "Tariff Menus to Avoid Rebound Peaks: Results from a Discrete Choice Experiment with Swiss Customers," Energies, MDPI, vol. 15(17), pages 1-21, August.
    10. Parrish, Bryony & Heptonstall, Phil & Gross, Rob & Sovacool, Benjamin K., 2020. "A systematic review of motivations, enablers and barriers for consumer engagement with residential demand response," Energy Policy, Elsevier, vol. 138(C).
    11. Bradley, Peter & Coke, Alexia & Leach, Matthew, 2016. "Financial incentive approaches for reducing peak electricity demand, experience from pilot trials with a UK energy provider," Energy Policy, Elsevier, vol. 98(C), pages 108-120.
    12. Bernadeta Gołębiowska, 2020. "Preferences for demand side management—a review of choice experiment studies," Working Papers 2020-05, Faculty of Economic Sciences, University of Warsaw.
    13. Sarran, Lucile & Gunay, H. Burak & O'Brien, William & Hviid, Christian A. & Rode, Carsten, 2021. "A data-driven study of thermostat overrides during demand response events," Energy Policy, Elsevier, vol. 153(C).
    14. Andrew Blohm & Jaden Crawford & Steven A. Gabriel, 2021. "Demand Response as a Real-Time, Physical Hedge for Retail Electricity Providers: The Electric Reliability Council of Texas Market Case Study," Energies, MDPI, vol. 14(4), pages 1-16, February.
    15. Cai, Qiran & Xu, Qingyang & Qing, Jing & Shi, Gang & Liang, Qiao-Mei, 2022. "Promoting wind and photovoltaics renewable energy integration through demand response: Dynamic pricing mechanism design and economic analysis for smart residential communities," Energy, Elsevier, vol. 261(PB).
    16. Dranka, Géremi Gilson & Ferreira, Paula, 2019. "Review and assessment of the different categories of demand response potentials," Energy, Elsevier, vol. 179(C), pages 280-294.
    17. Curtis, John & Brazil, William & Harold, Jason, 2019. "Understanding preference heterogeneity in electricity services: the case of domestic appliance curtailment contracts," Papers WP638, Economic and Social Research Institute (ESRI).
    18. Gjorgievski, Vladimir Z. & Markovska, Natasa & Abazi, Alajdin & Duić, Neven, 2021. "The potential of power-to-heat demand response to improve the flexibility of the energy system: An empirical review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 138(C).
    19. Good, Nicholas & Ellis, Keith A. & Mancarella, Pierluigi, 2017. "Review and classification of barriers and enablers of demand response in the smart grid," Renewable and Sustainable Energy Reviews, Elsevier, vol. 72(C), pages 57-72.
    20. Cortés-Arcos, Tomás & Bernal-Agustín, José L. & Dufo-López, Rodolfo & Lujano-Rojas, Juan M. & Contreras, Javier, 2017. "Multi-objective demand response to real-time prices (RTP) using a task scheduling methodology," Energy, Elsevier, vol. 138(C), pages 19-31.

    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:enepol:v:192:y:2024:i:c:s0301421524002684. 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/locate/enpol .

    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.