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How to engage consumers in demand response: a contract perspective


  • Xian He
  • Nico Keyaerts
  • Isabel Azevedo, Leonardo Meeus, Leigh Hancher, Jean-Michel Glachant


Nowadays, the European electricity systems are evolving towards a generation mix that is more decentralised, less predictable and less flexible to operate. In this context, additional flexibility is expected to be provided by the demand side. Thus, how to engage consumers to participate in demand response is becoming a pressing issue. In this paper, we provide an analytical framework to assess consumers’ potential and willingness to participate in active demand response from a contract perspective. On that basis, we present policy recommendations to empower and protect consumers in their shift to active demand response participants.

Suggested Citation

  • Xian He & Nico Keyaerts & Isabel Azevedo, Leonardo Meeus, Leigh Hancher, Jean-Michel Glachant, 2013. "How to engage consumers in demand response: a contract perspective," RSCAS Working Papers 2013/76, European University Institute.
  • Handle: RePEc:rsc:rsceui:2013/76

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    References listed on IDEAS

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    Cited by:

    1. Paterakis, Nikolaos G. & Erdinç, Ozan & Catalão, João P.S., 2017. "An overview of Demand Response: Key-elements and international experience," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 871-891.
    2. repec:eee:rensus:v:81:y:2018:i:p2:p:2181-2195 is not listed on IDEAS
    3. 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.
    4. Katz, Jonas & Andersen, Frits Møller & Morthorst, Poul Erik, 2016. "Load-shift incentives for household demand response: Evaluation of hourly dynamic pricing and rebate schemes in a wind-based electricity system," Energy, Elsevier, vol. 115(P3), pages 1602-1616.
    5. Lopes, Marta A.R. & Henggeler Antunes, Carlos & Janda, Kathryn B. & Peixoto, Paulo & Martins, Nelson, 2016. "The potential of energy behaviours in a smart(er) grid: Policy implications from a Portuguese exploratory study," Energy Policy, Elsevier, vol. 90(C), pages 233-245.
    6. Yi, Hongtao, 2015. "Clean-energy policies and electricity sector carbon emissions in the U.S. states," Utilities Policy, Elsevier, vol. 34(C), pages 19-29.
    7. Rosa Morales González & Shahab Shariat Torbaghan & Madeleine Gibescu & Sjef Cobben, 2016. "Harnessing the Flexibility of Thermostatic Loads in Microgrids with Solar Power Generation," Energies, MDPI, Open Access Journal, vol. 9(7), pages 1-24, July.
    8. Glachant, Jean-Michel, 2016. "Tacking stock of the EU “Power Target Model”… and steering its future course," Energy Policy, Elsevier, vol. 96(C), pages 673-679.
    9. Crispim, João & Braz, José & Castro, Rui & Esteves, Jorge, 2014. "Smart Grids in the EU with smart regulation: Experiences from the UK, Italy and Portugal," Utilities Policy, Elsevier, vol. 31(C), pages 85-93.
    10. repec:eee:juipol:v:45:y:2017:i:c:p:118-127 is not listed on IDEAS
    11. Boßmann, Tobias & Eser, Eike Johannes, 2016. "Model-based assessment of demand-response measures—A comprehensive literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 57(C), pages 1637-1656.
    12. Zhou, Kaile & Yang, Changhui & Shen, Jianxin, 2017. "Discovering residential electricity consumption patterns through smart-meter data mining: A case study from China," Utilities Policy, Elsevier, vol. 44(C), pages 73-84.
    13. Katz, Jonas, 2014. "Linking meters and markets: Roles and incentives to support a flexible demand side," Utilities Policy, Elsevier, vol. 31(C), pages 74-84.
    14. Soroudi, Alireza & Rabiee, Abbas & Keane, Andrew, 2017. "Distribution networks' energy losses versus hosting capacity of wind power in the presence of demand flexibility," Renewable Energy, Elsevier, vol. 102(PB), pages 316-325.
    15. repec:eee:rensus:v:77:y:2017:i:c:p:395-405 is not listed on IDEAS
    16. repec:eee:ejores:v:266:y:2018:i:1:p:340-353 is not listed on IDEAS

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    Electricity system; demand response; contract; energy policy;

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