The Demand Response Technology Cluster: Accelerating UK residential consumer engagement with time-of-use tariffs, electric vehicles and smart meters via digital comparison tools

Cost-effectively decarbonising the power sector and household energy use using variable renewable energy will require that electricity consumption becomes much more flexible and responsive to constraints in supply and the distribution network. In recent years residential demand response (DR) has received increasing attention that has sought to answer, based on current evidence, questions about how much consumers will engage with DR. This paper critically reviews the evidence base for residential consumer engagement with DR and draws out several important limitations in it. We argue for a more action-oriented focus on developing practical strategies to enable and unlock greater loadshifting and consumer engagement with DR within a changing technology and regulatory context. A number of recommendations are put forward for accelerating UK consumer engagement with DR, presented under three broad strategies: (a) promote awareness of smart tariffs, smart meters and storage and automation behind-the-meter devices as mutually-supportive components within a common 'DR technology cluster'; (b) deliver targeted support for adoption of electric vehicles and other storage and automation technologies; (c) enable and support informed adoption of DR-enabling products and services through 'smarter' digital comparison tools (DCTs), data portability, and faster, simpler switching. The interdependency between components within this DR technology cluster delivers efficiency but also poses a risk that one delayed component (e.g., smart metering) will hold-up policy and industry support for other components. The urgency of decarbonisation goals makes it necessary to push forward as many of these elements as possible rather than the pace being set by the slowest.

Automated summary

This paper critically reviews the evidence base for residential consumer engagement with demand response (DR) and suggests practical strategies to enable greater consumer participation within a changing technology and regulatory context. Recommendations for accelerating UK consumer engagement with DR include promoting awareness of smart tariffs, meters, and automation devices, supporting adoption of electric vehicles and storage technologies, and facilitating informed adoption of DR-enabling products and services through digital tools. The urgency of decarbonisation goals requires pushing forward various components within the DR technology cluster to avoid delays in policy and industry support.