Obstacles to demand response: Why industrial companies do not adapt their power consumption to volatile power generation

Leinauer, Christina; Schott, Paul; Fridgen, Gilbert; Keller, Robert; Ollig, Philipp; Weibelzahl, Martin

doi:10.1016/j.enpol.2022.112876

Article (Scientific journals)

Obstacles to demand response: Why industrial companies do not adapt their power consumption to volatile power generation

Leinauer, Christina; Schott, Paul; Fridgen, Gilbert et al.

2022 • In Energy Policy, 165, p. 112876

Peer reviewed

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https://hdl.handle.net/10993/53582

DOI
10.1016/j.enpol.2022.112876

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Keywords :

Demand flexibility; Demand-side management; Demand response; Industrial sector; Obstacles for demand flexibility; Case study research

Abstract :

[en] Various flexibility options in power systems, such as storage, grid expansion, and demand flexibility, gain increasing importance to balance the intermittent power supply of renewables. On the demand side, especially the industrial sector represents promising potential for Demand Response, i.e., the alignment of its power demand with the current power supply of renewables. However, there exist various obstacles that currently prevent companies from investing in new or (fully) exploiting existing flexibility potentials. In this paper, we investigate how economic, regulatory, technological, organizational, behavioral, informational, and competence obstacles pose barriers for companies to adjust their power consumption flexibly. For this purpose, we combine both a structured literature analysis and a case study. For the case study, we conduct 16 interviews with energy experts from companies from different industries. Our findings reveal that due to technical risk of disrupting the production process, lacking revenues, and too low cost savings, companies do not flexibilize their power consumption. Moreover, in particular, contradictory legislative incentives and missing IT standardization and interoperability represent key obstacles. Therefore, our results constitute a basis for targeted policy making in order to foster the exploitation of (existing) flexibility potential of industrial companies on the demand side.

Disciplines :

Management information systems
Energy

Author, co-author :

Leinauer, Christina

Schott, Paul

Fridgen, Gilbert ; University of Luxembourg > Interdisciplinary Centre for Security, Reliability and Trust (SNT) > FINATRAX

Keller, Robert

Ollig, Philipp

Weibelzahl, Martin

External co-authors :

yes

Language :

English

Title :

Obstacles to demand response: Why industrial companies do not adapt their power consumption to volatile power generation

Publication date :

2022

Journal title :

Energy Policy

ISSN :

0301-4215

Volume :

165

Pages :

112876

Peer reviewed :

Peer reviewed

Focus Area :

Security, Reliability and Trust
Sustainable Development

Additional URL :

https://www.sciencedirect.com/science/article/pii/S030142152200101X

FnR Project :

FNR13342933 - Paypal-fnr Pearl Chair In Digital Financial Services, 2019 (01/01/2020-31/12/2024) - Gilbert Fridgen

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since 10 January 2023

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