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What is the effect of weather on household electricity consumption? Empirical evidence from Ireland

Author

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  • Jieyi Kang

    (Department of Land Economy, University of Cambridge)

  • David Reiner

    (EPRG, CJBS, University of Cambridge)

Abstract

We explore the links between weather variables and residential electricity consumption using high-resolution smart metering data. While weather factors have been used for grid-level electricity demand estimations, the impact of different weather conditions on individual households has not been fully addressed. The deployment of smart meters enables us to analyse weather effects in different periods of the day using hourly panel datasets, which would previously have been impossible. To conduct the analysis, fixed-effects models are employed on half-hourly electricity consumption data from 3827 Irish household meters. We demonstrate that temperature has robust and relatively flat effects on electricity demand across all periods, whereas rain and sunshine duration show greater potential to affect individual behaviour and daily routines. The models show that the most sensitive periods differ for each weather variable. We also test the responses to weather factors for weekends and workdays. Weather sensitivities vary with the day of the week, which might be caused by different household patterns over the course of the week. The methodology employed in this study could be instructive for improving understanding behavioural response in household energy consumption. By using only weather indicators, this approach can be quicker and simpler than traditional methods —such as surveys or questionnaires — in identifying the periods when households are more responsive.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Jieyi Kang & David Reiner, 2021. "What is the effect of weather on household electricity consumption? Empirical evidence from Ireland," Working Papers EPRG2112, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
  • Handle: RePEc:enp:wpaper:eprg2112
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    References listed on IDEAS

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    3. Arshad, Selvia & Beyer, Robert C.M., 2023. "Tracking economic fluctuations with electricity consumption in Bangladesh," Energy Economics, Elsevier, vol. 123(C).
    4. Chengtao Deng & Zixin Guo & Xiaoyue Huang & Tao Shen, 2023. "The Dynamic Nexus of Fossil Energy Consumption, Temperature and Carbon Emissions: Evidence from Simultaneous Equation Model," IJERPH, MDPI, vol. 20(3), pages 1-17, January.

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    More about this item

    Keywords

    Weather effects; residential electricity consumption; fixed-effects models; smart metering data;
    All these keywords.

    JEL classification:

    • C55 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Large Data Sets: Modeling and Analysis
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • R22 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Other Demand
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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