Industrial Electricity Demand Research Articles

Industrial electricity demand in New York State

We will discuss electricity demand in manufacturing industries in upstate New York. Empirical results are presented based on data obtained at the electric utility service area level for the years 1969–1981. The equations are based on a partial adjustment model including relevant input prices and industrial output by SIC group. The estimated coefficients have the expected signs and are for the most part, statistically significant. There is considerable variation in price and output elasticities among SIC groups and between service areas, which suggests that energy policy and industrial policy at the state level should be tailored to specific industries and perhaps to specific subregions within the state. Forecasts of industrial electricity demand are based on assumptions of prices and industrial output growth made by the utility companies themselves. A comparison of these forecasts with those made by the utility companies indicates that electricity demand forecasts are sensitive to the inclusion of alternative fuel prices and to the level of sectoral disaggregation.

Demand for electricity in Nigeria: Some empirical findings

This paper presents the findings from an econometric model of Nigerian electricity demand. Electricity consumers are partitioned into three classes-namely. Residential, Commercial and Industrial. It shows that over the last two decades there has been tremendous increase in both the supply and demand for electric energy. Although supply has increased, it has not been able to keep pace with demand. Various explanatory variables that determine changes in demand are analysed for each of the three consuming sectors. The findings are as follows. (i) Per capital income, previous level of electricity consumption and urbanization are the most significant explanatory variables for the Residential sector's electricity consumption. The short and long-run income elasticities are found to be below unity, while whose of urbanization are above unity. The average price of electricity, though rightly signed, was found to be insignificant. (ii) As regards the commercial sector, the significant explanatory variables were previous level of electricity consumption, income, average price of electricity and urbanization. Urbanization was, however, found to be the most sensitive variable in respect to changes in the sector's electricity demand. (iii) Previous level of industrial electricity consumption and degree of urbanization were the main explanatory variables for changes in the Industrial sector's demand for electricity. Industrial output and income were not found to be significant variables in explaining changes in the Industrial sector's demand for electricity.

A model of industrial demand for electricity under time-of-use pricing and three labor shifts

In this paper we have developed and estimated the demand for electricity by an industrial (commercial) firm subject to time-of-use (TOU) pricing of electric power. In particular, we use a quadratic production function and directly incorporate into the production process the restriction that labor inputs can vary only among different labor shifts over the day. We show that the TOU structure implies a unique set of parameter restrictions across the demand functions for inputs. The model is applied to three firms in the Los Angeles area.

The industrial and commercial demand for electricity under time-of-use pricing

In this paper we have developed and estimated the demand for electricity by an industrial (commercial) firm subject to time-of-use (TOU) pricing of electric power. In the application we use a quadratic production function and directly incorporate into the production process the restrictions that some inputs cannot vary over the day. We show that the TOU structure implies a unique set of parameter restrictions across the demand functions for inputs.

The theory of maximum kW demand charges for electricity

The kilowatt (kW) demand charge characterizes most electricity price schedules for industrial customers, yet it has not been analysed thoroughly (compared with time-of-use rates). This article shows how such charges complicate interpretations of past estimates of the industrial demand for electricity. Using a utility maximization (cost minimization) model, we derive consistent demand curves, which are shown potentially to be subject to discontinuities.

The demand for electrical energy in Korean industry

There is no question that energy is an important ingredient in the development of any country. Unfortunately, the ability of less-developed countries to respond to the particular nuances of the energy market is not well understood. This paper endeavors to look at one aspect of this potential responsiveness in one country—Korea. After establishing an empirical relationship between the consumption of electrical energy in various industries and the prices of electrical energy, petroleum and coal, estimates of the magnitudes of the relationships are obtained. Finally, the stability of the estimated relationship is examined with the resultant suggestion that industrial demand for electricity was fairly stable during the decade of the 1970s.

Industrial electricity consumption in the UK: Past determinants and possible futures

The determinants of industrial electricity demand are examined and it is found that more than 40% of demand growth in the period 1959–1980 was caused by factors either unrelated or only indirectly related to growth in industrial output. Factors such as adjustments in industrial structure, technical change and the decline in self-generation of electricity were all important contributors to demand growth. Together with the methodological problems of using price as an explanatory variable, this suggests that those econometric approaches to demand forecasting for industrial electricity which rely solely on projections of industrial output and price are seriously defective. Output level and price are important in future demand, but current methods are not appropriate to capture their effect and more detailed sectoral work is required, which should take into account structural and technical change and developments in self-generation.

Response of Industrial and Commercial Customers to Time-of-Use Rates

In their article "Industrial and Commercial Demand for Electricity by Time of Day: A California Case Study," Chinbang Chung and Dennis J. Aigner present an econometric model of industrial demand for electricity by time of day and attempt to estimate relevant price elasticities.

Industrial and Commercial Demand for Electricity by Time-of-Day: A California Case Study

Recently there has been much interest in time-of-use (TOU) pricing structures for electric utilities. TOU pricing reflects more closely than conventional pricing the cost components of supplying electricity, which vary over the course of a single day as well as over days of the week and seasons of the year. Although such pricing structures have long been used in Europe, they did not receive much attention in the United States prior to 1974.

Theoretical determinants of the industrial demand for electricity by time of day

Theoretical determinants of the industrial demand for electricity by time of day

Industrial Generation of Electricity in 1985: A Regional Forecast

While several studies have estimated the industrial demand for electricity, this paper explicitly estimates the relationship between the industrial self-generation of electricity and electricity prices, an area of analysis which to our knowledge has not been explicitly modelled. The result is a possibly sharper analysis of the industrial demand for electricity, given the choice to self-generate, and perhaps more accurate forecasts of energy demand. Further, this study recognizes the regional differences that characterize energy systems, including utility electric systems. We use this regional model to forecast industrial generation of electricity in 1985 under the Department of Energy Reference Scenario and under an electricity rate reform scenario which would implement marginal cost prices for electricity.

Analysis of the Industrial Demand for Electricity

Journal Article Analysis of the Industrial Demand for Electricity Get access R. E. Baxter, R. E. Baxter National Ports Council, London Search for other works by this author on: Oxford Academic Google Scholar R. Rees R. Rees Queen Mary College, London Search for other works by this author on: Oxford Academic Google Scholar The Economic Journal, Volume 78, Issue 310, 1 June 1968, Pages 277–298, https://doi.org/10.2307/2229464 Published: 01 June 1968