System dynamics model for analysis of demand response on incorporating autoswitch in the Colombian electrical sector

Miguel-Angel Niño-Zambrano, Carlos-Alberto Cobos-Lozada, Martha-Eliana Mendoza-Becerra, Hugo-Armando Ordóñez-Erazo and Rodolfo García-Sierra

Energy Policy, 2024, vol. 193, issue C

Abstract: This study investigates the potential outcomes of transforming the Colombian electricity market—70% of which is regulated—into a deregulated market. Given the impact of climate change and the need for greater control over the Colombian retail energy sector, it is crucial to examine future scenarios where two policies, successful in other countries, could improve market management. A simulation was conducted using a system dynamics model to analyze residential user behavior by manipulating demand response and implementing an autoswitch policy. The results validate the effectiveness of regulating electricity consumption through price management and the autoswitch policy, where customers can automatically switch suppliers. By 2033, these policies could reduce electricity prices by 11%–14%, depending on weather and user behavior changes, leading to significant customer savings, especially for higher-income groups, while ensuring suppliers' profitability. Although the conclusions suggest a positive outlook, the implementation of these policies requires regulatory changes and the adoption of smart energy meters. he proven policies could help Colombian government in managing consumption during energy crises.

Keywords: Autoswitch; Demand response; Energy market; Deregulated electricity market; User response (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:193:y:2024:i:c:s0301421524002775

DOI: 10.1016/j.enpol.2024.114257

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