"ESO Smart" Mobile App Project Shows Promising Energy Saving Results
PROJECT OVERVIEW
The Lithuanian DSO “ESO” collaborated with Vilnius University to conduct research on the impact of descriptive information provision on household electricity consumption. The goal of the experiment was to investigate electricity consumer behavior and quantify their willingness to adjust their consumption in response to electricity market signals. Additionally, the research aimed to examine consumer ability and willingness to reduce consumption during peak electricity price hours.
As the energy sector undergoes a global transformation, the ability to adjust electricity consumption and generation is of paramount importance. Household consumers and prosumers account for one-third of total electricity consumption in Lithuania, and it is necessary to actively involve them in the energy market. However, the willingness of consumers to respond to electricity market price signals was previously unclear. Only a handful of publications on this topic existed, and none of them focused on Lithuania.
Thus, the idea was developed to conduct an experiment in Lithuania to investigate the effect of descriptive information provision on electricity consumption. Vilnius University proposed the idea, and “ESO” expressed interest and initiated cooperation with the university’s Faculty of Economics.
THE EXPERIMENT
The experiment involved the creation of a mobile app with functionality to view hourly production and generation data. The app also enabled consumers to monitor electricity market data and match hourly consumption and generation with market prices. The app’s active notifications informed consumers about high on-peak hour prices day-ahead. Furthermore, the app allowed consumers to compare their electricity consumption with similar consumers in several bins, based on their attributes such as average electricity consumption.
Approximately 1,500 household electricity consumers and prosumers participated in the experiment. The mobile application consisted of two versions: basic information provision and extended information provision for consumers. The first group was provided with basic information such as hourly consumption data and market prices. The second group additionally received active notifications about market price signals and other data. A reference group was also used as a baseline for calculations. These groups were the subjects of the experiment, which lasted for one year, from spring 2020 to spring 2021.
Experimental sample consisted of approx. 1500 household electricity consumers and prosumers. Mobile application consisted of two versions: basic information provision and extended information provision for consumers. First group was provided with basic information such as hourly consumption data and market prices. Second group additionally received active notifications about market price signals and other data. There was also reference group used as a baseline for calculations. These groups were subjects to experiment. Duration of the experiment was one year – from spring 2020 to spring 2021.
RESULTS
The experiment revealed that information provision on hourly consumption data can help consumers reduce their electricity consumption by 8.6%, which was greater than “ESO’s” estimation. Additionally, providing active information about high price peak hours of electricity can reduce peak loads by about 23%. However, this does not necessarily lower total energy consumption, as some on-peak consumption was simply shifted to later hours when electricity was cheaper.
The results of the experiment and its analysis were published in the Journal of “Energy Economics” in 2022.
For further information on the project, please contact our Innovation Expert – [email protected].