Variability of electricity load patterns and its effect on demand response: A critical peak pricing experiment on Korean commercial and industrial customers

Dongsik Jang, Jiyong Eom, Min Jae Park and Jae Jeung Rho

Energy Policy, 2016, vol. 88, issue C, 11-26

Abstract: To the extent that demand response represents an intentional electricity usage adjustment to price changes or incentive payments, consumers who exhibit more-variable load patterns on normal days may be capable of altering their loads more significantly in response to dynamic pricing plans. This study investigates the variation in the pre-enrollment load patterns of Korean commercial and industrial electricity customers and their impact on event-day loads during a critical peak pricing experiment in the winter of 2013. Contrary to conventional approaches to profiling electricity loads, this study proposes a new clustering technique based on variability indices that collectively represent the potential demand–response resource that these customers would supply. Our analysis reveals that variability in pre-enrollment load patterns does indeed have great predictive power for estimating their impact on demand–response loads. Customers in relatively low-variability clusters provided limited or no response, whereas customers in relatively high-variability clusters consistently presented large load impacts, accounting for most of the program-level peak reductions. This study suggests that dynamic pricing programs themselves may not offer adequate motivation for meaningful adjustments in load patterns, particularly for customers in low-variability clusters.

Keywords: Demand response; Critical peak pricing; Variability of load patterns; Clustering of customers; Heterogeneity; Load impacts (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:88:y:2016:i:c:p:11-26

DOI: 10.1016/j.enpol.2015.09.029

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