| 1. |
- El Gohary, Fouad, et al.
(author)
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Evaluating demand charges as instruments for managing peak-demand
- 2023
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In: Renewable & sustainable energy reviews. - : Elsevier. - 1364-0321 .- 1879-0690. ; 188
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Journal article (peer-reviewed)abstract
- Reducing peak demand in distribution grids is associated with benefits such as delayed infrastructural investments, decreased losses and a reduced risk of power deficits. One instrument aimed at reducing peak demand is the demand charge, a capacity-based component in a network tariff that intends to encourage users to reduce their peak usage. Using ten years of data from a Swedish distribution network, this study demonstrates that demand charges may be unsuitable for managing the problems they are intended to address. Two critical misalignments in the design of these demand charges are identified: 1) Demand charges are most commonly based on maximum billing demand – a given user's maximum monthly peak – whereas the problem of peak demand overwhelmingly concerns maximum system peaks in the distribution grid as a whole. The lack of coincidence between these peaks suggest that demand charges are, by design, ineffective for reducing peak demand. 2) The peaks which determine a distribution system's maximum capacity requirements are rare, seasonal and largely temperature-driven events, whereas demand charges mainly target users' habitual daily patterns, encouraging daily shifts from peak to off-peak hours. As long as the main driver of network costs, maximum system peaks, are absent in their design, demand charges will neither reflect the costs that users impose on the grid nor provide them with the correct price signals on how to best act.
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| 2. |
- El Gohary, Fouad, et al.
(author)
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Evaluating user understanding and exposure effects of demand-based tariffs
- 2022
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In: Renewable & sustainable energy reviews. - : Elsevier. - 1364-0321 .- 1879-0690. ; 155
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Journal article (peer-reviewed)abstract
- Conventionally, demand response functions by communicating to electricity users through price signals embedded in their tariffs. These signals are intended to encourage a change in behavior, which hinges on the ability of users to understand their tariff and link it to the appropriate curtailment actions. This study focuses on demand-based tariffs, evaluating user's understanding of these tariffs and the conceptual grasp of power (rate of energy consumption) that they implicitly require. It also explores whether users exposed to these tariffs for extended periods develop a better understanding of them. Using a survey, the following points are sequentially evaluated: (1) Respondents' abilities to intuitively distinguish between energy/power (2) Their understanding of the different effects of curtailment actions under four distinct tariffs (3) Whether those subject to demand-based pricing outperform those subject to energy-based pricing. Despite a weaker conceptual understanding of power compared to energy, there were no significant differences between respondents' understanding of energy and demand-based tariffs. Comparing those subject to energy and demand-based pricing reveals that a majority were unaware of their own tariff (and hence which group they fall into), but for the minority of users who correctly identified their own tariffs, those subject to demand-based pricing outperform their energy-based counterparts. When presented with clear and instructive tariffs, respondents are largely able to deduce the consequences of curtailment actions, despite a weak conceptual understanding of power. A deeper problem is that the price signal may be entirely disregarded by an apathetic majority, reaching only an inquisitive minority.
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| 3. |
- El Gohary, Fouad, et al.
(author)
-
Getting the signal : Do electricity users meet the preconditions for making informed decisions on demand response?
- 2023
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In: Energy Research & Social Science. - : Elsevier. - 2214-6296 .- 2214-6326. ; 100
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Journal article (peer-reviewed)abstract
- Demand response refers to changes in power consumption by electricity users in response to certain conditions on the electricity market. Anticipated to play a major role in the energy transition, demand response is conventionally exercised through network tariffs, which serve as a medium for price signals intended to incentivize and guide electricity users on how to best behave. Considerable attention has been devoted to the unresolved question of whether users are willing to respond to these signals, a question premised on the implicit assumption of cognizant users making informed decisions. Less attention has been dedicated to evaluating the validity of this assumption, and the extent to which users actually internalize these signals prior to making any decision on how to respond. This study posits that prior to making an informed decision on how to act, an electricity user must first “qualify” through meeting a set of preconditions. These preconditions are captured by a proposed three-stage framework that involves i) receiving the price signal (being aware of the tariff), ii) processing the price signal (comprehending its features) and iii) assimilating the price signal (understanding how behavior influences costs). Evaluating this framework using a survey, the study finds that only 3.8–8.5 % of respondents clear all three stages. This minority is substantially more likely to contain older villa-residents, who are comparatively more concerned with their costs and read their bills more frequently. The findings of this study demonstrate that the “audience” of tariff-based price signals are a small fraction of what is commonly supposed, and that research and policy should shift from a dominant focus on the magnitude of these price signals, towards alternative or improved strategies for communication and engagement.
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| 4. |
- El Gohary, Fouad, et al.
(author)
-
Identifying Challenges in Engaging Users to Increase Self-Consumption of Electricity in Microgrids
- 2021
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In: Energies. - : MDPI AG. - 1996-1073. ; 14:5
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Journal article (peer-reviewed)abstract
- A microgrid's self-consumption rate reflects its ability to retain its own energy and decrease its reliance on the synchronous grid. This paper investigates the empirical case of a microgrid equipped with photovoltaic (PV) panels and identifies challenges in engaging the microgrid's users to increase their self-consumption. Accordingly, we explored both the physical and social dimensions of the microgrid. The former involved mapping the electricity consumption and production through an exploratory data analysis, and evaluating the associated price signals, while the latter involved the use of design interventions to explore users' perceptions of the system. We highlight the problem of price signal impedance, the need for cost reflective pricing and the challenge in designing and extending internal price models in settings with various actors. We address the limitations of price signals, alongside alternative unidimensional signals, and emphasize the need for an integrated approach to a user engagement strategy as well as the challenges that this approach entails. Our results shed light on the complexity of energy communities such as microgrids, and why their implementation can introduce multidimensional challenges that demand cross-disciplinary approaches.
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| 5. |
- El Gohary, Fouad
(author)
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The Price Signal Paradigm : On the evolution and limitations of demand-side flexibility in the EU
- 2024
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In: Energy Policy. - : Elsevier. - 0301-4215 .- 1873-6777. ; 192
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Journal article (peer-reviewed)abstract
- Demand-side flexibility (DSF) generally refers to adjusting electricity demand to better match supply and capacity in the grid. Widely seen as a central pillar of the energy transition, it is anticipated to play a key role in decarbonization. Despite its recent popularity, its efficacy as a policy instrument remains limited. This paper argues that DSF is being hindered by an overreliance on what is seen as its primary lever – the price signal. The price signal “paradigm” refers to how the general problem of fostering a more flexible demand side has been constrained to the narrow task of having users respond to price signals. The consequence of this development has been for policymakers and system operators to limit themselves to the role of information providers and neutral market facilitators, absolving themselves of more direct obligations and shifting the bulk of the responsibility onto end users who are required to actively participate in the electricity market. This paper explores the emergence of this paradigm, shedding light on the historical factors that have shaped the evolution of DSF, and the limitations inherent to its contemporary form. It outlines policy recommendations and an alternative approach that centers on shifting more responsibility towards system operators.
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| 6. |
- Stikvoort, Britt, et al.
(author)
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Serving two masters : How dual price signals can undermine demand flexibility
- 2024
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In: Energy Policy. - : Elsevier. - 0301-4215 .- 1873-6777. ; 185
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Journal article (peer-reviewed)abstract
- Demand-side flexibility is often encouraged via demand response programs, where users are incentivized to adjust their electricity consumption based on price signals in tariffs. The design and implementation of these signals are vital, as they link conditions of the energy system with user behaviour. As a result of energy system separation into stages of generation, many users are required to simultaneously respond to two price signals. While existing research has mainly examined responses to a single signal, this study highlights the complexities when users must react to two signals simultaneously. It presents a case study using two distinct price signals: real-time pricing (RTP) and a demand charge, analysing the implications such dual price signals could have on users. The study reveals the empirical incompatibility of these signals, leading to conflicting user goals. Such interference complicates decision-making for demand flexibility, potentially eroding user trust in retailers and system operators. The study ends with proposing an alternative tariff, resolving the dual price situation, which facilitates user comprehension and decision-making, and thus enhances the potential for demand flexibility.
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| 7. |
- van Zoest, Vera, et al.
(author)
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Demand charges and user flexibility : Exploring differences in electricity consumer types and load patterns within the Swedish commercial sector
- 2021
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In: Applied Energy. - : Elsevier. - 0306-2619 .- 1872-9118. ; 302
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Journal article (peer-reviewed)abstract
- Demand-based charges have been employed as a tool intended to reduce electricity users’ maximum demand but there is a lack of consensus regarding their efficacy. One reason for this may be the diversity in the flexibility potential of different types of users. This study explores the flexibility potential of different types of electricity consumers in the small to medium-sized commercial sector (35-63A) in response to a compulsory demand charge. The objective is to characterize varying levels of flexibility with respect to different types of commercial users with different load patterns. A multivariate clustering technique was used to group commercial users with comparable load patterns based on a year of hourly data before the tariff change was introduced. This method was used to: (1) match users from the intervention area and reference area with similar load patterns, without losing any user data, and (2) compare how users with different load patterns react differently to the tariff change. We found clear distinctions in the types of commercial users in each cluster and their response to the tariff, demonstrating the extent to which demand flexibility may be dependent on the nature of an organization’s activities and its respective load patterns. The highest demand flexibility was found in clusters which had a large share of users in the IT sector, commerce and public administration. The lowest demand flexibility was found in the real estate and education sectors. Future research should further investigate these variations and explore the possibilities of tailoring interventions to the specific types of users.
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| 8. |
- van Zoest, Vera, 1992-, et al.
(author)
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Evaluating the effects of the COVID-19 pandemic on electricity consumption patterns in the residential, public, commercial and industrial sectors in Sweden
- 2023
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In: Energy and AI. - : Elsevier. - 2666-5468. ; 14
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Journal article (peer-reviewed)abstract
- The COVID-19 pandemic has had drastic effects on societies around the world. Due to restrictions or recommendations, companies, industries and residents experienced changes in their routines and many people shifted to working from home. This led to alterations in electricity consumption between sectors and changes in daily patterns. Understanding how various properties and features of load patterns in the electricity network were affected is important for forecasting the network's ability to respond to sudden changes and shocks, and helping system operators improve network management and operation. In this study, we quantify the extent to which the COVID-19 pandemic has led to shifts in the electricity consumption patterns of different sectors in Sweden. The results show that working from home during the pandemic has led to an increase in the residential sector's total consumption and changes in its consumption patterns, whereas there were only slight decreases in the industrial sector and relatively few changes in the public and commercial sectors. We discuss the reasons for these changes, the effects that these changes will have on expected future electricity consumption patterns, as well as the effects on potential demand flexibility in a future where working from home has become the new norm.
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| 9. |
- van Zoest, Vera, 1992-, et al.
(author)
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Spatio-temporal modelling of the effects of the COVID-19 pandemic on electricity consumption patterns in Stockholm, Sweden
- 2024
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In: Science Talks. - 2772-5693. ; 9
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Journal article (peer-reviewed)abstract
- The COVID-19 pandemic has had drastic effects on the way we live. With the sudden shift to the home office, a shift in electricity consumption has also taken place between the residential, public, industrial and commercial sectors. Understanding these changes is crucial for a sustainable energy transition, as these changes affect the load and flexibility to adapt. In this study, we quantify the extent to which the COVID-19 pandemic has led to shifts in the electricity consumption patterns. Based on data from around 10,000 smart electricity meters in Stockholm, Sweden, we built a spatio-temporal multivariate regression model at postal code level to predict what the total electricity consumption during the pandemic would have looked like if there were no pandemic, allowing for quantification of the effect of the pandemic as the difference between the predicted and actual consumption, adjusted for differences in temperature. Results of 10-fold cross-validation showed good accuracy with a Mean Absolute Percentage Error (MAPE) of around 5%, with slight variations for season and consumer sectors. The prediction maps allow us to find clusters where electricity consumption changes are highest, showing where changes in the local electricity infrastructure may be needed in the future.
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