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Barriers to electricity load shift in companies: A survey-based exploration of the end-user perspective

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  • Olsthoorn, Mark
  • Schleich, Joachim
  • Klobasa, Marian
Abstract
As countries move toward larger shares of renewable electricity, the slow diffusion of active electricity load management should concern energy policy makers and users alike. Active load management can increase capacity factors and thereby reduce the need for new capacity, improve reliability, and lower electricity prices. This paper conceptually and empirically explores barriers to load shift in industry from an end-user perspective. An online survey, based on a taxonomy of barriers developed in the realm of energy efficiency, was carried out among manufacturing sites in mostly Southern Germany. Findings suggest that the most important barriers are risk of disruption of operations, impact on product quality, and uncertainty about cost savings. Of little concern are access to capital, lack of employee skills, and data security. Statistical tests suggest that companies for which electricity has higher strategic value rate financial and regulatory risk higher than smaller ones. Companies with a continuous production process report lower barrier scores than companies using batch or just-in-time production. A principal component analysis clusters the barriers and multivariate analysis with the factor scores confirms the prominence of technical risk as a barrier to load shift. The results provide guidance for policy making and future empirical studies.

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  • Olsthoorn, Mark & Schleich, Joachim & Klobasa, Marian, 2015. "Barriers to electricity load shift in companies: A survey-based exploration of the end-user perspective," Energy Policy, Elsevier, vol. 76(C), pages 32-42.
  • Handle: RePEc:eee:enepol:v:76:y:2015:i:c:p:32-42
    DOI: 10.1016/j.enpol.2014.11.015
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    8. Olsthoorn, Mark & Schleich, Joachim & Wohlfarth, Katharina & Klobasa, Marian, 2018. "How much load flexibility can a euro buy? Findings from a choice experiment with companies in the German commerce and services sector," Working Papers "Sustainability and Innovation" S20/2018, Fraunhofer Institute for Systems and Innovation Research (ISI).
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