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Smart-Grids and Climate Change. Consumer adoption of smart energy behaviour: a system dynamics approach to evaluate the mitigation potential

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  • Elena Claire Ricci

    (Università degli Studi di Milano, Centro Euro-Mediterraneo sui Cambiamenti Climatici and Fondazione Eni Enrico Mattei)

Abstract

adoption of “Smart Energy Behaviour”. Within this term we include different levels of: i) shift in electricity consumption towards less costly-less polluting and congestioning hours; ii) the reduction of mainly wasteful electricity consumption, that maintains similar levels of comfort; iii) the enrolment in demand response programs; iv) electricity generation via residential micro-photovoltaic (PV) systems. These behavioural changes are triggered by the installation of advanced metering systems and a tariff policy that prices electricity according to time-of-use. The context analysed is that of Italy, where the largest diffusion of smart meters has taken place. We perform a set of 2500 simulations of our model with stochastic parameters to take into account the uncertainty in their estimation, to find that on average consumer involvement may induce on aggregate a shift in residential electricity consumption of 13.0% by 2020 and of 29.6% by 2030; and reduction in residential electricity consumption (just by reducing wasteful consumption) of 2.5% by 2020 and 9.2% by 2030. These consumption changes may have strong impacts on the system operating costs (in the order of 380 M€/y by 2020, 1203 M€/y by 2030), on the CO2 emissions (in the order of 1.56 MtonCO2/y by 2020, 5.01 Mton CO2/y by 2030), confirming the value of consumer participation.

Suggested Citation

  • Elena Claire Ricci, 2013. "Smart-Grids and Climate Change. Consumer adoption of smart energy behaviour: a system dynamics approach to evaluate the mitigation potential," Working Papers 2013.71, Fondazione Eni Enrico Mattei.
    • Handle: RePEc:fem:femwpa:2013.71
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    References listed on IDEAS

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    Cited by:

    1. Ricci, Elena Claire & Banterle, Alessandro, 2020. "Do major climate change-related public events have an impact on consumer choices?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 126(C).

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    More about this item

    Keywords

    Smart-Grids; Demand Response; Demand Management; System Dynamics; Consumer Choices; Climate Policy;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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