Evidence of Households' Demand Flexibility in Response to Variable Electricity Prices – Results from a Comprehensive Field Experiment in Norway

Short-term demand-side flexibility is expected to play an essential role in balancing intermittent electricity generation in the future carbon-neutral power system. This study quantifies the price responsiveness of highly electrified households, with many using electricity for heating and charging electric vehicles. The experiment exposed 3,746 Norwegian households to variable hourly price signals with notification one day ahead during three winter months. The response to 14 different price signals was collected and analysed. We find that households reduce their electricity demand by, on average, 2.92% in hours with high prices, and the reduction does not diminish after repeated interventions. Further, we find an increased response to price signals with a short peak price period and for prices above a high threshold value of 15 NOK/kWh. Our results suggest that despite the limited potential of manually-performed demand response from households, it can be trusted and utilised to improve the operation and planning of the power system