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Assessing consumer readiness for participation in IoT-based demand response business models

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  • Radenković, Miloš
  • Bogdanović, Zorica
  • Despotović-Zrakić, Marijana
  • Labus, Aleksandra
  • Lazarević, Saša

Abstract

The paper studies the consumer readiness for participation in new business models for demand response in electricity markets. The main premise is that consumers’ attitudes, if considered during the development, ensure that the business model meets the interests of the consumers, while still maintaining a focus on its original purpose. The goal of the paper is twofold: to develop a new business model suitable for a developing electricity market, that enables customer participation in the demand response services, and to analyze customer readiness to participate in the developed model. The proposed business model relies on internet of things, as a technology that provides customers with an easy way to participate in demand response services. The customers’ attitudes towards various incentives, such as green energy, environmental protection, profit and interest in new technologies, as well as trust in the market operator were taken into consideration. The results indicate that different service packages can be created for different types of customers depending on individual characteristics. Additionally, results show that consumers show interest in environmental conservation, while they prefer state institutions as service operators. Using the gathered results, new insights can be gained into demand response user acceptance, and further business strategies formulated.

Suggested Citation

  • Radenković, Miloš & Bogdanović, Zorica & Despotović-Zrakić, Marijana & Labus, Aleksandra & Lazarević, Saša, 2020. "Assessing consumer readiness for participation in IoT-based demand response business models," Technological Forecasting and Social Change, Elsevier, vol. 150(C).
    • Handle: RePEc:eee:tefoso:v:150:y:2020:i:c:s004016251930174x
    DOI: 10.1016/j.techfore.2019.119715
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    5. Etxandi-Santolaya, Maite & Colet-Subirachs, Alba & Barbero, Mattia & Corchero, Cristina, 2023. "Development of a platform for the assessment of demand-side flexibility in a microgrid laboratory," Applied Energy, Elsevier, vol. 331(C).
    6. Vinoth Kumar Ponnusamy & Padmanathan Kasinathan & Rajvikram Madurai Elavarasan & Vinoth Ramanathan & Ranjith Kumar Anandan & Umashankar Subramaniam & Aritra Ghosh & Eklas Hossain, 2021. "A Comprehensive Review on Sustainable Aspects of Big Data Analytics for the Smart Grid," Sustainability, MDPI, vol. 13(23), pages 1-35, December.
    7. Lehmann, Nico & Sloot, Daniel & Ardone, Armin & Fichtner, Wolf, 2022. "Consumer preferences for the design of a demand response quota scheme – Results of a choice experiment in Germany," Energy Policy, Elsevier, vol. 167(C).
    8. Adrian Tantau & András Puskás-Tompos & Costel Stanciu & Laurentiu Fratila & Catalin Curmei, 2021. "Key Factors Which Contribute to the Participation of Consumers in Demand Response Programs and Enable the Proliferation of Renewable Energy Sources," Energies, MDPI, vol. 14(24), pages 1-22, December.
    9. Sean Williams & Michael Short & Tracey Crosbie & Maryam Shadman-Pajouh, 2020. "A Decentralized Informatics, Optimization, and Control Framework for Evolving Demand Response Services," Energies, MDPI, vol. 13(16), pages 1-30, August.
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