Acceptance of demand-side flexibility in the residential heating sector — Evidence from a stated choice experiment in Germany

Jonas Bender, Larissa Fait and Heike Wetzel

Energy Policy, 2024, vol. 191, issue C

Abstract: The growing share of renewables and the electrification of the transport and heating sectors are increasingly leading to an imbalance between electricity supply and demand in the distribution grids at the regional and local level. While the supply side is becoming increasingly flexible and volatile, the demand side is largely rigid and inflexible, especially at the household level. However, households have great potential to provide flexibility for grid stability by matching their electricity demand to supply. In this paper, we investigate whether and under which conditions households are willing to participate in so-called regional flexibility markets and adjust their electricity demand. We use a subsample of 541 observations from a large-scale online survey of private households in Germany that includes a stated choice experiment. Our results indicate that demand-side flexibility in the residential heating sector is accepted to some degree, but is mainly constrained by interventions in the own home and loss of comfort. Nevertheless, a large number of households are willing to offer flexibility, with additional services of flexibility products having a positive impact on willingness. In addition, the general willingness to participate in regional flexibility markets strongly depends on household-specific characteristics.

Keywords: Demand-side flexibility; Residential heating sector; Choice experiment; Regional flexibility market; Willingness to accept; Preference heterogeneity (search for similar items in EconPapers)
JEL-codes: D12 D91 Q41 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:191:y:2024:i:c:s0301421524001654

DOI: 10.1016/j.enpol.2024.114145

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