Barriers to electricity load shift in companies: A survey-based exploration of the end-user perspective

Mark Olsthoorn, Joachim Schleich and Marian Klobasa

Energy Policy, 2015, vol. 76, issue C, 32-42

Abstract: As countries move toward larger shares of renewable electricity, the slow diffusion of active electricity load management should concern energy policy makers and users alike. Active load management can increase capacity factors and thereby reduce the need for new capacity, improve reliability, and lower electricity prices. This paper conceptually and empirically explores barriers to load shift in industry from an end-user perspective. An online survey, based on a taxonomy of barriers developed in the realm of energy efficiency, was carried out among manufacturing sites in mostly Southern Germany. Findings suggest that the most important barriers are risk of disruption of operations, impact on product quality, and uncertainty about cost savings. Of little concern are access to capital, lack of employee skills, and data security. Statistical tests suggest that companies for which electricity has higher strategic value rate financial and regulatory risk higher than smaller ones. Companies with a continuous production process report lower barrier scores than companies using batch or just-in-time production. A principal component analysis clusters the barriers and multivariate analysis with the factor scores confirms the prominence of technical risk as a barrier to load shift. The results provide guidance for policy making and future empirical studies.

Keywords: Load shift; Load management; Barriers (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (17)

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Working Paper: Barriers to electricity load shift in companies: A survey-based exploration of the end-user perspective (2015)
Working Paper: Barriers to electricity load shift in companies: A survey-based exploration of the end-user perspective (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:76:y:2015:i:c:p:32-42

DOI: 10.1016/j.enpol.2014.11.015

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