Survey- and simulation-based analysis of residential demand response: Appliance use behavior, electricity tariffs, home energy management systems

Residential demand response (DR) aims to stabilize the electricity grid by utilizing the flexibility of end-users. To this end, end-users are offered time-varying electricity prices and incentivized for load shifting. End-users can maximize bill reduction through automated load shifting using home energy management systems (HEMSs). Since HEMS is a new technology, the future DR potential of its mass use is unknown. Here, surveys can be very useful for gaining insight into future behaviour and preferences in using HEMS. Therefore, the objective of this study is twofold: (1) to understand appliance use behaviour, electricity tariff perception, and tendency towards HEMS-based DR participation, through a survey. And then, (2) to simulate the DR potential by entering survey responses into a HEMS optimization tool. The results show that 78% of the respondents are willing to engage in HEMS-based DR. This provides the potential to reduce the peak period consumption by 33%. However, the average bill savings achieved by HEMS owners is only 6.7%, which can hinder reaching this potential. Still, 21% of the HEMS owners save more than 10% on their bills. 8% save over 15%, and 3% over 20%. These can be the target audience of the future HEMS market and DR campaigns.