Further exploring the potential of residential demand response programs in electricity distribution

Abstract

Smart grids play a key role in realizing climate ambitions. Boosting consumption flexibility is an essential measure in bringing the potential gains of smart grids to fruition. The collective scientific understanding of demand response programs argues that time-of-use tariffs have proven its merits. The findings upon which this conclusion rests are, however, primarily derived from studies covering energy-based time-of-use rates over fairly short periods of time. Hence, this empirical study set out with the intention of estimating the extent of response to a demand-based time-of-use electricity distribution tariff among Swedish single-family homes in the long term. The results show that six years after the implementation households still respond to the price signals of the tariff by cutting demand in peak hours and shifting electricity consumption from peak to off-peak hours. Studies conducted in the Nordic countries commonly include only homeowners and so another aim of the study was to explore the potential of demand response programs among households living in apartment buildings. The demand-based tariff proved to bring about similar, but not as marked, effects in rental apartments, whereas there are virtually no corresponding evidences of demand response in condominium apartments.