One service fits all? Insights on demand response dilemmas of differently equipped households in Germany

Abstract

Households equipped with flexible technologies, such as electric vehicles, can support the energy transition by shifting electricity consumption to times of high renewable supply and by preventing consumption peaks that cannot be covered by existing grid and generation infrastructure. Demand response services support households in performing these consumption shifts. Households ask for specifications of services that stand partly in contrast to each other. For instance, while electric vehicle owners tend to insist on retaining control over their charging, others prefer data-driven automation to minimize their active involvement. Recent studies exploring the acceptance of demand response services focused either solely on specific household groups (e.g. electric vehicle users) or on a broad representative sample without further differentiation. Complementarily to fill this gap, we examine differences in preferences for contrasting service designs between household groups. Specifically, we consider: (i) the type of flexible technology to which demand response is applied, and (ii) the adoption level, i.e., whether the households plan to, or currently own, a flexible technology. In a vignette survey, we examine the preferences towards four contrasting service designs with German households that either own or have expressed interest in acquiring a flexible technology (n = 962). Our results show that the preferences do not fundamentally differ between the kind of flexible technology and adoption level. Generally, participants prefer automated demand response services with data sharing. The added value of realizing energy cost savings effectively and efficiently stands out as the main driver for the diffusion of demand response services, outweighing data privacy concerns. Contrary to our expectations, electric vehicle owners did not show a special need for control and households not yet owning flexible technologies did not express a need for little effort. We discuss the implications of our findings for demand response service providers and outline pathways of future research in this domain.