Demand charges and user flexibility – Exploring differences in electricity consumer types and load patterns within the Swedish commercial sector

Abstract

Demand-based charges have been employed as a tool intended to reduce electricity users’ maximum demand but there is a lack of consensus regarding their efficacy. One reason for this may be the diversity in the flexibility potential of different types of users. This study explores the flexibility potential of different types of electricity consumers in the small to medium-sized commercial sector (35-63A) in response to a compulsory demand charge. The objective is to characterize varying levels of flexibility with respect to different types of commercial users with different load patterns. A multivariate clustering technique was used to group commercial users with comparable load patterns based on a year of hourly data before the tariff change was introduced. This method was used to: (1) match users from the intervention area and reference area with similar load patterns, without losing any user data, and (2) compare how users with different load patterns react differently to the tariff change. We found clear distinctions in the types of commercial users in each cluster and their response to the tariff, demonstrating the extent to which demand flexibility may be dependent on the nature of an organization’s activities and its respective load patterns. The highest demand flexibility was found in clusters which had a large share of users in the IT sector, commerce and public administration. The lowest demand flexibility was found in the real estate and education sectors. Future research should further investigate these variations and explore the possibilities of tailoring interventions to the specific types of users.