Demand Response Requirements from the Cultural, Social, and Behavioral Perspectives

Abstract

Demand-side response programs, commonly known as demand response (DR), are interesting ways to attract consumers’ participation to improve electric consumption patterns. Customers are encouraged to modify their usage patterns in reaction to price increases through DR programs. When wholesale market prices are high or network reliability is at risk, DR can help to establish a balance between electricity generation and consumption by providing incentives or considering penalties. The overall objective of adopting DR programs is to increase network reliability and decrease operational costs. Nevertheless, the successful deployment of DR programs requires a set of conditions without which no success can be guaranteed. Implementing DR programs and achieving customers’ optimal power consumption behavior could be obtained through technical methods, such as using smart home appliances and big data techniques. However, even if each of these approaches is correctly implemented, they are not able to address all aspects of the problem. The findings of several studies demonstrate that, in addition to technical and economic concerns, social, cultural, and behavioral variables play a significant role in DR implementation. Therefore, this paper investigated the social, cultural, and behavioral variables as critical requirements for implementing DR programs. Furthermore, a theoretical framework and an analytical model of the elements impacting the electricity consumption are introduced that should be considered by the planners.