Abstract: This paper conducts a discrete choice experiment among 167 households in the Delhi region in India, to study the acceptability of demand response (DR) programs among upper-income households. Attributes include rate types, rate bands, reductions in power outages, and expected monthly savings. Results indicate a preference for time-of-use pricing over real-time pricing, and a preference for three rate slabs per day over two. Respondents prioritize reductions in power outages and minimizing potential expenses, reflecting the financial sensitivity and energy poverty relative to other countries. Respondents' ages and incomes further affect the value that they attach to reductions in power outages. The paper proposes various structures of DR programs that could achieve high predicted enrollment and concludes by estimating the potential benefits of implementing such programs. Overall, the analysis indicates that a DR program could be feasible in a developing country context, particularly if it is designed keeping in mind local socio-economic considerations. This may be supported through further confirmatory research.

Abstract: Demand response (DR) can aid with grid integration of renewables, ensuring security of supply, and reducing generation costs. However, not enough is known about how residential customers’ perceptions of DR shape their response to such programs. This paper offers a deeper understanding of – and reveals the heterogeneity in – this relationship by conducting a quantile regression analysis of a Belgian DR trial, combining data on response with information on household attitudes towards smart appliances. Results overall suggest that improving response requires subtle shifts in electricity consumption behaviour, which can be achieved through changes in user perceptions. Specifically, if customers are inclined to be flexible, a stronger perception of smart appliances as being beneficial can greatly improve response. With those who are less flexible, the cost of smart appliances is a bigger concern. Thus, when designing DR programs, policymakers should aim to promote modest behaviour changes – so as to minimise inconvenience – in customers, by improving awareness on the benefits of smart appliances. Uptake of such DR programs may be improved by explaining the financial benefits or offering incentives to less flexible population segments. Lastly, improving response among older population segments will require a deeper investigation into their concerns.