Implementing automated residential demand response in South Korea: Consumer preferences and market potential

Abstract

In recent years, electricity demand response (DR) has attracted attention as the most cost-effective way to balance the electricity grid. This study analyzes the preferences of South Korean energy consumers on residential DR and calculated the potential capacity of peak reduction in summer. The estimation demonstrates that consumers have heterogeneous preferences for automated residential DR programs and highly value reducing their monthly electricity bills. A scenario analysis shows that approximately 60.0% of metropolitan consumers in South Korea would participate in a residential DR program, and the corresponding reduction in the peak load is forecasted to be approximately 1.74 GW.