Household Response to Dynamic Pricing of Electricity - A Survey of the Empirical Evidence

Faruqui, Ahmad; Sergici, Sanem

doi:10.2139/ssrn.1134132

Cited by 89 publications

(115 citation statements)

References 25 publications

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“…The elasticity of electricity demand with respect to price change has been calculated in many residential sector electricity demand studies [14,15,28,29]. One measurement of elasticity is the customer change in demand in the same time period that the price change occurs, known as own price elasticity (commonly referred to as price elasticity).…”

Section: Economic Model Of Behaviourmentioning

confidence: 99%

“…They have taken place in many places across the globe. More information about these kinds of studies can be found in the references [14,30,45,46]. The studies vary significantly in method, test sample sizes and results.…”

Section: Dynamic Pricingmentioning

confidence: 99%

“…Even if it is assumed that investment in this smart technology has the potential to lower prices in the long-run, most utilities will not choose to or agree to absorb the additional costs in the shortrun. Analysis done by Faruqui and Sergici shows that at least part of the cost would have to be borne by the residential customers [14], possibly in the form of monthly fixed charges. Higher monthly fixed charges may have a more adverse impact on lower income customers where the fixed charges represent a higher percentage of the total monthly bill [14].…”

Section: Smart Metering Costmentioning

confidence: 99%

“…While positive results have been reported for some price response programs, with the majority of them being on pilot bases [14], issues still remain. A significant proportion of residential customers are non-responsive to price [15], and higher prices discriminate against lower income households [16].…”

Section: Introductionmentioning

confidence: 99%

“…A significant proportion of residential customers are non-responsive to price [15], and higher prices discriminate against lower income households [16]. The cost of supporting infrastructure (smart meters, in-home-displays, etc) would be staggering [14]. The lack of quantitative understanding of consumer behaviour and end-use activity adaptive capacity is a significant barrier to design and deployment of effective DR programs [17].…”

Section: Introductionmentioning

confidence: 99%

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Residential peak electricity demand response—Highlights of some behavioural issues

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Krumdieck

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2013

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Electricity demand response refers to consumer actions that change the utility load profile in a way that reduces costs or improves grid security. The focus of demand response has mainly been on the commercial and big industrial sectors because of the large demand reduction that they can offer to the utility grid operators. Utilities are showing increasing interest in residential demand response (RDR). RDR can be treated as an energy resource which can be assessed and commercially developed, however, there are still some issues that remain to be addressed for RDR to be successful. These include price unresponsiveness of some residential consumers, equity issues and high cost of the metering infrastructure. The aim of this paper is to investigate and present some of the challenges in achieving effective voluntary demand reduction based on a review of residential demand response literature as well as the general residential energy use behaviour literature. The authors propose the use of a hybrid engineering approach using social psychology and economic 2 behaviour models to overcome these challenges and realize the benefits of supply security and cost management.

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Section: Economic Model Of Behaviourmentioning

confidence: 99%

Section: Dynamic Pricingmentioning

confidence: 99%

Section: Smart Metering Costmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Brown¹,

Zhou²,

Ahmadi³

2018

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The electric power systems of many industrialized nations are challenged by the need to accommodate distributed renewable generation, increasing demands of a digital society, growing threats to infrastructure security, and concerns over global climate disruption. The “smart grid”—with a two‐way flow of electricity and information between utilities and consumers—can help address these challenges, but various financial, regulatory, and technical obstacles hinder its rapid deployment. An overview of experiences with smart grids policies in pioneering countries shows that many governments have designed interventions to overcome these barriers and to facilitate grid modernization. Smart grid policies include a new generation of regulations and finance models such as regulatory targets, requirements for data security and privacy, renewable energy credits, and various interconnection tariffs and utility subsidies. This article is categorized under: Energy Infrastructure > Economics and Policy Energy Policy and Planning > Economics and Policy Energy Infrastructure > Climate and Environment

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Smart‐grid policies: an international review

Brown

Zhou

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WIREs Energy & Environment

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The electric power systems of many industrialized nations are challenged by the need to accommodate distributed renewable generation, increasing demands of a digital society, growing threats to infrastructure security, and concerns over global climate disruption. The 'smart grid'-with a two-way flow of electricity and information between utilities and consumers-can help address these challenges, but various financial, regulatory, and technical obstacles hinder its rapid deployment. An overview of experiences with smart-grid policies in pioneering countries shows that many governments have designed interventions to overcome these barriers and to facilitate grid modernization. Smart-grid policies include a new generation of regulations and finance models such as regulatory targets, requirements for data security and privacy, renewable energy credits, and various interconnection tariffs and utility subsidies. C 2012 John Wiley & Sons, Ltd.

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Household Response to Dynamic Pricing of Electricity - A Survey of the Empirical Evidence

Cited by 89 publications

References 25 publications

Residential peak electricity demand response—Highlights of some behavioural issues

Residential peak electricity demand response—Highlights of some behavioural issues

Smart grid governance: An international review of evolving policy issues and innovations

Smart‐grid policies: an international review

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