IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v60y2013icp487-498.html
   My bibliography  Save this article

Economic potential of demand response at household level—Are Central-European market conditions sufficient?

Author

Listed:
  • Prüggler, Natalie

Abstract

The aim of this paper is to show the economic potential of demand response (DR) on household level at Central European market conditions. Thereby, required economic benefits for consumers' participation, the realistic load shifting potential at household level and the estimation of essential intelligent infrastructure costs are discussed. The core of this paper builds a case-study applying spot market-oriented load shifting from the supplier's point of view by using Austrian electricity market data, household load profiles as well as a heat pump and e-car charging load profile. It is demonstrated which cost savings for suppliers can be derived from such load shifting procedure at household level. Furthermore, upper cost limits for intelligent infrastructure in order to break-even are derived. Results suggest to take a critical look at European discussions on DR implementation on household level, showing that at Central European market conditions the potential for DR at household level is restricted to significant loads and hence, the applied load shifting strategy is only beneficial with application to heat pumps. In contrast, the frequently discussed shifting of conventional household devices' loads (such as washing machines) economically does not add up.

Suggested Citation

  • Prüggler, Natalie, 2013. "Economic potential of demand response at household level—Are Central-European market conditions sufficient?," Energy Policy, Elsevier, vol. 60(C), pages 487-498.
    • Handle: RePEc:eee:enepol:v:60:y:2013:i:c:p:487-498
    DOI: 10.1016/j.enpol.2013.04.044
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421513002978
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2013.04.044?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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. Newsham, Guy R. & Birt, Benjamin J. & Rowlands, Ian H., 2011. "A comparison of four methods to evaluate the effect of a utility residential air-conditioner load control program on peak electricity use," Energy Policy, Elsevier, vol. 39(10), pages 6376-6389, October.
    2. Grohnheit, Poul Erik & Andersen, Frits Møller & Larsen, Helge V., 2011. "Area price and demand response in a market with 25% wind power," Energy Policy, Elsevier, vol. 39(12), pages 8051-8061.
    3. Bartusch, Cajsa & Wallin, Fredrik & Odlare, Monica & Vassileva, Iana & Wester, Lars, 2011. "Introducing a demand-based electricity distribution tariff in the residential sector: Demand response and customer perception," Energy Policy, Elsevier, vol. 39(9), pages 5008-5025, September.
    4. Ericson, Torgeir, 2009. "Direct load control of residential water heaters," Energy Policy, Elsevier, vol. 37(9), pages 3502-3512, September.
    5. Walawalkar, Rahul & Blumsack, Seth & Apt, Jay & Fernands, Stephen, 2008. "An economic welfare analysis of demand response in the PJM electricity market," Energy Policy, Elsevier, vol. 36(10), pages 3692-3702, October.
    6. 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.
    7. Vasconcelos & Jorge, 2008. "Survey of Regulatory and Technological Developments Concerning Smart Metering in the European Union Electricity Market," EUI-RSCAS Working Papers 1, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
    8. Alexandra-Gwyn Paetz & Elisabeth Dütschke & Wolf Fichtner, 2012. "Smart Homes as a Means to Sustainable Energy Consumption: A Study of Consumer Perceptions," Journal of Consumer Policy, Springer, vol. 35(1), pages 23-41, March.
    9. Prüggler, Natalie & Prüggler, Wolfgang & Wirl, Franz, 2011. "Storage and Demand Side Management as power generator’s strategic instruments to influence demand and prices," Energy, Elsevier, vol. 36(11), pages 6308-6317.
    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. Hu, Zheng & Kim, Jin-ho & Wang, Jianhui & Byrne, John, 2015. "Review of dynamic pricing programs in the U.S. and Europe: Status quo and policy recommendations," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 743-751.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. 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.
    3. Zhang, Qi & Mclellan, Benjamin C. & Tezuka, Tetsuo & Ishihara, Keiichi N., 2013. "A methodology for economic and environmental analysis of electric vehicles with different operational conditions," Energy, Elsevier, vol. 61(C), pages 118-127.
    4. Rious, Vincent & Perez, Yannick & Roques, Fabien, 2015. "Which electricity market design to encourage the development of demand response?," Economic Analysis and Policy, Elsevier, vol. 48(C), pages 128-138.
    5. Eid, Cherrelle & Koliou, Elta & Valles, Mercedes & Reneses, Javier & Hakvoort, Rudi, 2016. "Time-based pricing and electricity demand response: Existing barriers and next steps," Utilities Policy, Elsevier, vol. 40(C), pages 15-25.
    6. Derakhshan, Ghasem & Shayanfar, Heidar Ali & Kazemi, Ahad, 2016. "The optimization of demand response programs in smart grids," Energy Policy, Elsevier, vol. 94(C), pages 295-306.
    7. Wang, Yong & Li, Lin, 2015. "Time-of-use electricity pricing for industrial customers: A survey of U.S. utilities," Applied Energy, Elsevier, vol. 149(C), pages 89-103.
    8. Adela Conchado & Pedro Linares, 2010. "The Economic Impact of Demand-Response Programs on Power Systems. A survey of the State of the Art," Working Papers 02-2010, Economics for Energy.
    9. 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.
    10. Nikolas Schöne & Kathrin Greilmeier & Boris Heinz, 2022. "Survey-Based Assessment of the Preferences in Residential Demand Response on the Island of Mayotte," Energies, MDPI, vol. 15(4), pages 1-30, February.
    11. 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.
    12. Bartusch, Cajsa & Alvehag, Karin, 2014. "Further exploring the potential of residential demand response programs in electricity distribution," Applied Energy, Elsevier, vol. 125(C), pages 39-59.
    13. Koliou, Elta & Eid, Cherrelle & Chaves-Ávila, José Pablo & Hakvoort, Rudi A., 2014. "Demand response in liberalized electricity markets: Analysis of aggregated load participation in the German balancing mechanism," Energy, Elsevier, vol. 71(C), pages 245-254.
    14. Cortés-Arcos, Tomás & Bernal-Agustín, José L. & Dufo-López, Rodolfo & Lujano-Rojas, Juan M. & Contreras, Javier, 2017. "Multi-objective demand response to real-time prices (RTP) using a task scheduling methodology," Energy, Elsevier, vol. 138(C), pages 19-31.
    15. Dütschke, Elisabeth & Paetz, Alexandra-Gwyn, 2013. "Dynamic electricity pricing—Which programs do consumers prefer?," Energy Policy, Elsevier, vol. 59(C), pages 226-234.
    16. Warren, Peter, 2014. "A review of demand-side management policy in the UK," Renewable and Sustainable Energy Reviews, Elsevier, vol. 29(C), pages 941-951.
    17. Koliou, Elta & Bartusch, Cajsa & Picciariello, Angela & Eklund, Tobias & Söder, Lennart & Hakvoort, Rudi A., 2015. "Quantifying distribution-system operators' economic incentives to promote residential demand response," Utilities Policy, Elsevier, vol. 35(C), pages 28-40.
    18. Hobman, Elizabeth V. & Frederiks, Elisha R. & Stenner, Karen & Meikle, Sarah, 2016. "Uptake and usage of cost-reflective electricity pricing: Insights from psychology and behavioural economics," Renewable and Sustainable Energy Reviews, Elsevier, vol. 57(C), pages 455-467.
    19. Yilmaz, Selin & Xu, Xiaojing & Cabrera, Daniel & Chanez, Cédric & Cuony, Peter & Patel, Martin K., 2020. "Analysis of demand-side response preferences regarding electricity tariffs and direct load control: Key findings from a Swiss survey," Energy, Elsevier, vol. 212(C).
    20. Jiang, Bo & Farid, Amro M. & Youcef-Toumi, Kamal, 2015. "Demand side management in a day-ahead wholesale market: A comparison of industrial & social welfare approaches," Applied Energy, Elsevier, vol. 156(C), pages 642-654.

    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:60:y:2013:i:c:p:487-498. See general information about how to correct material in RePEc.

    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 bibliographic 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.

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

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.