In several studies it has been shown that customer behavior can be affected by the
feedback and information. In IEA DSM Task XI three main mechanisms were identified
by which smaller customers can be motivated to change behavior, save energy and be
rewarded for making the changes [ҟ17]:
End Use Monitoring and Feedback (EUMF): customers are presented with a
breakdown of their individual end uses of electricity, its costs and environmental
impacts and are motivated to make general energy savings
Time of Use (TOU): electricity customers are presented with different prices for
electricity at different times and respond by shifting demand from high to low cost
price periods. A variation of this motivating mechanism is Dynamic TOU pricing
where customers can change their use of electricity with reasonably short notice
times (typically 24 hours notice) in response to notified price changes.
Demand Side Bidding (DSB): customers participate in energy trading, by
contracting specific demand changes in response to requests by System Operators
or Suppliers (for ex. an offer to deliver a specific change in energy use when the spot
market price hits a specific level). Dynamic TOU pricing is a valuable motivator for
delivering DSB, which can deliver energy saving as a result of reduced system
losses and reserve generation capacity and overall increases in operational
efficiency.
Customers also respond strongly to reliability events, enrolling to deliver a
contracted response when called to do so by the grid operator. These measures
can include direct load control, instantaneous interruptible load, and similar programs.