Green electricity requires flexible consumers

Denmark faces a significant challenge when we transition to an electricity system powered solely by renewable energy by 2030.

‘Wind and solar, which are our primary renewable energy sources, are fluctuating by nature, and the fluctuations in production can make it expensive to balance the grid,’ explains Christina Gravert, Associate Professor at the Department of Economics.

‘Different measures are necessary for maintaining a stable and reliable power supply,’ she adds.

Consumers play an active role

In her new research project ‘Behavioural barriers to electricity demand management’, Christina Gravert will investigate a key part of the solution to the volatile supply of green electricity: incorporating flexibility on the consumer side.

As consumers we could play an active role in balancing the system by adjusting our consumption to the times when production is highest. Economists generally assume that measures such as peak-time charges and hourly billing will be effective in encouraging consumers to be more flexible in their electricity consumption.

‘But we don’t know for sure if these measures really affect consumption and who are the type of people that react,’ Christina Gravert points out.

Behavioural barriers are investigated

Specifically, Christina Gravert will investigate what the consumers' various behavioural barriers mean for their flexibility. Behavioural barriers include lack of information, inattention and adaptation costs.

‘An important aspect of our study is also to highlight possible heterogeneous effects across socio-economic groups in society. The results can form the basis for future energy policies that are both more efficient and fairer,’ Christina Gravert expects.

The research project is supported by Independent Research Fund Denmark with DKK 3.1 million.