Demand response in low-carbon power systems: a review of residential electrical demand response projects

The transition to a future low-carbon powersystem will increase the need for and value ofdemand response – where demand can becurtailed or shifted in time according to thenetwork’s requirements. The electricity supplyindustry is investing heavily in ‘smart’technologies, partly based on the assumptionthat demand response will be available when itis needed, yet this is an unfamiliar concept tomost consumers, who still view electricity as aresource that can be consumed as and whenthey want it. That such a gap exists between thereality on the ground and the requirements ofthe future is a cause for concern, yet themethods proposed today to achieve demandresponse are based predominantly onassumptions that people will accept andrespond to variations in the price of electricity.There is however growing evidence that the‘people are economic actors’ approach isinadequate when dealing with the complexitiesof energy-use within the home. This paperreviews existing residential demand responseprojects, and supports the growing realisationthat the principal challenge in demand responseis no longer the technology itself but rather itsacceptance and use by the consumer. In orderto deal with this challenge, a more holisticapproach to demand response is needed, onethat can better deal with both the ‘hard’ and ‘soft’sides of the system.