Boosting behavioral change in residential electricity consumption demand response programs and feedback

Abstract: As part of realizing national and European climate ambitions, it is imperative to bring about increased energy efficiency and consumption flexibility in the residential sector of the Swedish power market. In addition to governmental policy instruments to this end, market-based measures play an important role in making behavioral change in domestic electricity use happen. In light of the prevailing lack of incentives for residential consumers to save electricity and cut peak demand at times of physical and financial market constraints, the research studies that form the basis of this thesis have the aim of adding to the body of knowledge on policy instruments for the purpose of boosting behavioral change in residential electricity consumption. The research has accordingly contributed to the general statistics on residential electricity consumption, which constitute the starting point for policy instrument development, and augmented knowledge on the merits of residential demand response programs involving hourly settlements in power trading and demand-based, time-of-use tariffs in power distribution as well as graphic feedback on individual households’ electricity use by means of a statistics service provided over the Internet. The overall results have shown that household behavior, together with physical factors such as heating systems, help explain the sizeable differences in electricity consumption among homeowners. Statistical analysis of variance has in this context proven to be an effective method for identifying key indicators of policy development. Power suppliers and electricity consumers as well as society as a whole have been found to gain substantially from hourly settlements in retail. To suppliers, the greatest benefits are associated with risk management, while the major advantage to customers is that they are provided with an opportunity to reduce their electricity costs. It has also been empirically demonstrated that electricity users are willing to adjust their consumption to a demand-based, time-varying distribution tariff. Households generally have a favorable attitude towards this type of distribution tariff, seeing as they indirectly have a positive impact on the environment. Providing households with feedback over the Internet on their individual electricity use and demand has been shown to contribute to an increased awareness and lead to energy efficiency in homes. Easy accessibility and simplicity have proven to be key success factors in this context. Combining conventional bar charts, color symbolism and historic feedback is expedient in this respect.