Social implications of residential demand response in cool temperate climates

Residential electrical demand response (DR) offers the prospect of reducing the environmental impact of electricity use, and also the supply costs. However, the relatively small loads and numerous actors imply a large effort: response ratio. Residential DR may be an essential part of future smart grids, but how viable is it in the short to medium term? This paper reviews some DR concepts, then evaluates the propositions that households in cool temperate climates will be in a position to contribute to grid flexibility within the next decade, and that that they will allow some automated load control. Examples of demand response from around the world are discussed in order to assess the main considerations for cool climates. Different tariff types and forms of control are assessed in terms of what is being asked of electricity users, with a focus on real‐time pricing and direct load control in energy systems with increasingly distributed resources. The literature points to the significance of thermal loads, supply mix, demand‐side infrastructure, market regulation, and the framing of risks and opportunities associated with DR. In concentrating on social aspects of residential demand response, the paper complements the body of work on technical and economic potential.