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Financial incentive approaches for reducing peak electricity demand, experience from pilot trials with a UK energy provider

Bradley, Peter; Coke, Alexia; Leach, Matthew

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Authors

Alexia Coke

Matthew Leach



Abstract

© 2016 Elsevier Ltd Whilst tariff-based approaches to load-shifting are common in the residential sector, incentive-based approaches are rare. This is so, even though providing customers incentives to shape their power consumption patterns has substantial potential. This paper presents findings from an exploratory UK pilot study that trials financial payments and detailed energy feedback to incentivise load-shifting of residential electricity consumption. An intervention study was implemented measuring actual energy use by individual households as well as conducting surveys and interviews. From the trials it was found that the approaches resulted in reductions in peak time energy use. Evidence from the study found that the incentives-based approaches were able to overcome some of the barriers to response experienced in Time-of-Use studies, though less good on others. Interestingly, the height of the barriers varied by the electricity-using practice and the incentivising approach applied. The height of the barriers also varied by participant. The study concludes by identifying that broad participation in demand response is likely to require a suite of incentivising approaches that appeal to different people, a key policy finding of interest to international agencies, government, public and private sector entities.

Journal Article Type Article
Acceptance Date Jul 13, 2016
Online Publication Date Aug 26, 2016
Publication Date Nov 1, 2016
Deposit Date Oct 4, 2016
Publicly Available Date Aug 26, 2017
Journal Energy Policy
Print ISSN 0301-4215
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 98
Pages 108-120
DOI https://doi.org/10.1016/j.enpol.2016.07.022
Keywords energy policy, smart metering, demand side response, financial incentives, barriers, energy
Public URL https://uwe-repository.worktribe.com/output/917161
Publisher URL http://dx.doi.org/10.1016/j.enpol.2016.07.022
Contract Date Oct 4, 2016

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