Abstract
In light of China’s Carbon Neutrality Target and facing the fluctuating pressure of power supply brought on by new energy intermittent power generation, it is urgent to mobilize a large number of residential flexible loads that can respond instantaneously to mitigate peak–valley difference. Under a framework of demand-side management (DSM) and utility analysis, we empirically investigate customers’ costs from interrupting typical electrical terminals at the household level. Specifically, by using the contingent valuation method (CVM), we explore the factors that affect households’ Willingness to Accept (WTA) of voluntarily participating in the interruption management during the summer electricity peak and estimate the distribution of households’ WTA values. We find that given the value of WTA, households’ participation rate in the interruption management significantly decreases with the increase in interruption duration and varies with the type of terminal appliance that is on direct interruption management. Moreover, the majority of households are willing to participate in the interruption management even if the compensation amount is low. The factors that determine households’ WTA and the size of their influences vary with the type of electrical terminal. The results imply that differentiating the terminal electricity market and accurately locking on the target terminals by considering the household heterogeneity can reduce the household welfare losses arising from DSM.
Highlights
To reach peak CO2 emission by 2030 and achieve carbon neutrality by 2060, China has initiated a transition toward a more sustainable energy system based on renewable energies
We find that given the value of Willingness to Accept (WTA), households’ participation rate in the interruption management significantly decreases with the increase in interruption duration and varies with the type of terminal appliance that is on direct interruption management
We find that given the same WTA value, the proportion of households which agree to participate in interruption management significantly decreases as the interruption duration increases, and the participation rate varies with the type of the terminal appliance that is directly controlled
Summary
To reach peak CO2 emission by 2030 and achieve carbon neutrality by 2060, China has initiated a transition toward a more sustainable energy system based on renewable energies. China occupies 39% of the world’s renewable energy employment (Wang et al, 2021). With the increasing proportion of intermittent power generation such as wind and solar energy in China’s power grid, the power supply presents significant random fluctuation, bringing new challenges to the balance of power supply and demand and to the stable operation of the power grid. In order to better integrate renewable energies— wind and solar with high variability due to fluctuating weather conditions—and to ensure the stability of the power system, a more flexible frame of residential demand side within the power system is needed through providing balanced power by frequent control and supporting the management of grid congestions in transmission grids.
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