IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v65y2014icp490-500.html
   My bibliography  Save this article

Including dynamic CO2 intensity with demand response

Author

Listed:
  • Stoll, Pia
  • Brandt, Nils
  • Nordström, Lars

Abstract

Hourly demand response tariffs with the intention of reducing or shifting loads during peak demand hours are being intensively discussed among policy-makers, researchers and executives of future electricity systems. Demand response rates have still low customer acceptance, apparently because the consumption habits requires stronger incentive to change than any proposed financial incentive. An hourly CO2 intensity signal could give customers an extra environmental motivation to shift or reduce loads during peak hours, as it would enable co-optimisation of electricity consumption costs and carbon emissions reductions. In this study, we calculated the hourly dynamic CO2 signal and applied the calculation to hourly electricity market data in Great Britain, Ontario and Sweden. This provided a novel understanding of the relationships between hourly electricity generation mix composition, electricity price and electricity mix CO2 intensity. Load shifts from high-price hours resulted in carbon emission reductions for electricity generation mixes where price and CO2 intensity were positively correlated. The reduction can be further improved if the shift is optimised using both price and CO2 intensity. The analysis also indicated that an hourly CO2 intensity signal can help avoid carbon emissions increases for mixes with a negative correlation between electricity price and CO2 intensity.

Suggested Citation

  • Stoll, Pia & Brandt, Nils & Nordström, Lars, 2014. "Including dynamic CO2 intensity with demand response," Energy Policy, Elsevier, vol. 65(C), pages 490-500.
  • Handle: RePEc:eee:enepol:v:65:y:2014:i:c:p:490-500
    DOI: 10.1016/j.enpol.2013.10.044
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421513010677
    Download Restriction: Full text for ScienceDirect subscribers only

    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. 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.
    2. O'Sheasy, Michael, 2003. "Demand Response: Not Just Rhetoric, It Can Truly Be the Silver Bullet," The Electricity Journal, Elsevier, vol. 16(10), pages 48-60, December.
    3. Darby, Sarah J. & McKenna, Eoghan, 2012. "Social implications of residential demand response in cool temperate climates," Energy Policy, Elsevier, vol. 49(C), pages 759-769.
    4. Magali Delmas & Maria J. Montes-Sancho & Jay P. Shimshack, 2010. "Information Disclosure Policies: Evidence From The Electricity Industry," Economic Inquiry, Western Economic Association International, vol. 48(2), pages 483-498, April.
    5. Weisser, Daniel, 2007. "A guide to life-cycle greenhouse gas (GHG) emissions from electric supply technologies," Energy, Elsevier, vol. 32(9), pages 1543-1559.
    6. Gagnon, Luc & Belanger, Camille & Uchiyama, Yohji, 2002. "Life-cycle assessment of electricity generation options: The status of research in year 2001," Energy Policy, Elsevier, vol. 30(14), pages 1267-1278, November.
    7. Herter, Karen & McAuliffe, Patrick & Rosenfeld, Arthur, 2007. "An exploratory analysis of California residential customer response to critical peak pricing of electricity," Energy, Elsevier, vol. 32(1), pages 25-34.
    8. Gottwalt, Sebastian & Ketter, Wolfgang & Block, Carsten & Collins, John & Weinhardt, Christof, 2011. "Demand side management—A simulation of household behavior under variable prices," Energy Policy, Elsevier, vol. 39(12), pages 8163-8174.
    9. Jacobson, Mark Z. & Delucchi, Mark A., 2011. "Providing all global energy with wind, water, and solar power, Part I: Technologies, energy resources, quantities and areas of infrastructure, and materials," Energy Policy, Elsevier, vol. 39(3), pages 1154-1169, March.
    10. Sioshansi, Fereidoon P., 1991. "The myths and facts of energy efficiency : Survey of implementation issues," Energy Policy, Elsevier, vol. 19(3), pages 231-243, April.
    11. Markard, Jochen & Holt, Edward, 2003. "Disclosure of electricity products--lessons from consumer research as guidance for energy policy," Energy Policy, Elsevier, vol. 31(14), pages 1459-1474, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Roldán Fernández, Juan Manuel & Payán, Manuel Burgos & Santos, Jesús Manuel Riquelme & García, Ángel Luis Trigo, 2017. "The voluntary price for the small consumer: Real-time pricing in Spain," Energy Policy, Elsevier, vol. 102(C), pages 41-51.
    2. Daví-Arderius, Daniel & Sanin, María-Eugenia & Trujillo-Baute, Elisa, 2017. "CO2 content of electricity losses," Energy Policy, Elsevier, vol. 104(C), pages 439-445.
    3. repec:eee:appene:v:195:y:2017:i:c:p:1023-1037 is not listed on IDEAS
    4. 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.
    5. repec:eee:appene:v:216:y:2018:i:c:p:73-90 is not listed on IDEAS
    6. Niesten, Eva & Alkemade, Floortje, 2016. "How is value created and captured in smart grids? A review of the literature and an analysis of pilot projects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 53(C), pages 629-638.
    7. L. (Lisa B.) Ryan & Sarah La Monaca & Linda Mastrandrea & Petr Spodniak, 2018. "Harnessing electricity retail tariffs to support climate change policy," Open Access publications 10197/9911, School of Economics, University College Dublin.

    More about this item

    Keywords

    CO2 intensity; Electricity price; Demand response;

    JEL classification:

    Statistics

    Access and download statistics

    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:65:y:2014:i:c:p:490-500. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/enpol .

    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 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.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.