Shift happens!

Abstract

This master thesis provides a review of dynamic energy contracts and their role in shifting electricity consumption in households in the Netherlands. In this research the mixed-methods approach is used to identify changes in electricity consumption behavior of consumers with a dynamic energy contract compared to consumers with a fixed energy contract. Dynamic energy contracts are recently introduced in line with the Clean Energy for all package of the European Commission (2019) and the need for more flexibility regarding electricity consumption in individual households. Qualitative research found that individual households are only willing to be flexible in their demand with activities that are not time-critical such as washing and cleaning, while there was almost no demand flexibility with activities such as cooking and watching television. Based on real-time consumer data of a Dutch energy supplier, a difference-in- difference (DiD) regression analysis is performed to analyze the effect of dynamic energy contracts on electricity consumption. This study revealed that consumers with a dynamic energy contract have a different consumption behavior pattern compared to their own behavior pattern under a different contract and compared to consumers with a fixed energy contract. These findings indicate that the dynamic energy contract can change the consumption behavior pattern of individual households, which can be explained by paying the hourly electricity price in this type of contract. This research can form an inspiration and knowledge base for future research that can elaborate on the role of dynamic energy contracts in demand load shifting.