New thesis by Aemiro Melkamu Daniel provides attributes that demand flexibility contract providers can use to design compensation schemes and effectively market contracts for people willing to offer electricity demand flexibility. The thesis investigates concerns related to residential electricity demand flexibility (potential to reduce electricity consumption during peak load situations) in Sweden and household fuel choice in urban Ethiopia. Aemiro defends his thesis Friday April 3rd, 2020. Follow the dissertation online. (click on headline to learn more)

Aemiro nailing his thesis to the wall

Paper I and paper II in the thesis respectively address household heterogeneity in valuing electricity demand flexibility attributes and in the use of choice decision rules for demand flexibility electricity contracts. Paper III examines the effect of disclosing pro-environmental information on preferences for load restrictions in Swedish households while the last paper explores the determinants of fuel choice in urban Ethiopia where households use one or more types of fuels to meet their energy demand.

The main finding in paper I is that Swedish households are heterogeneous in terms of their valuations for restriction in electricity use for domestic purposes in the evening and anonymous sharing of electricity consumption information. Some households are willing to provide flexibility by accepting load controls at a relatively low compensation and they ask for sizeable compensation to share their electricity consumption information. From the perspective of the contract providers, these findings suggest that information-optional contracts can generate more customers than contracts that bundle households’ consumption information with various load controls.

In paper II, I find that accounting for alternative contract choice strategies of respondents, specifically elimination-by-aspects, results in lower willingness-to-accept estimates for demand flexibility contract attributes. The result can be useful in designing compensation schemes for people who are willing to offer demand flexibility by accepting restrictions on electricity use during peak load situations. We find that pro-environmental framing has a limited effect on households’ preferences and willingness-to-accept for contract attributes characterized by load restrictions. The findings in the last paper show that socio-demographic (gender, education, income and household size) and house characteristics are important factors that affect fuel choice in Ethiopia and, therefore, policies designed to promote clean fuel use and adoption and sustained use of energy-efficient technologies can target these variables.

Daniel, Aemiro Melkamu. 2020 Towards sustainable energy consumption: Electricity demand flexibility and household fuel choice. Umeå University

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