Barriers to electricity load shift in companies: A survey-based exploration of the end-user perspective
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 justin-
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.
Domains
Business administration
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