Abstract
Satisfying the demand for energy services is the driving force of the whole energy sector, and therefore, the demand for electricity and heat is investigated in detail in this chapter. Electricity and heat demand by sector and for various applications are discussed but also load profiles and the related concept of load duration curves. The price elasticity of demand is reviewed along with the possible role of demand-side management for providing flexibility, e.g. through load shifting. Also, the relevance of demand projections at different time horizons is highlighted along with the accompanying challenges. Furthermore, attention is devoted to the pricing structures viewed by customers, i.e. the electricity tariffs, introducing among others time-of-use and real-time pricing tariffs.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
Comparing the net electricity consumption with the gross electricity production (see Sect. 2.2) provides an indication of the losses in the system.
- 2.
From a system perspective, it has to be considered that this new electricity demand will, in most cases, be accompanied by a reduction of energy carriers used up to now in internal combustion engines (ICE) like diesel or gasoline.
- 3.
- 4.
Or at least their purchase of electricity from the electric grid.
- 5.
As well as, e.g. the fluctuating supply.
- 6.
Another form of price discrimination – so-called Ramsey prices – will be discussed in Sect. 6.1.4.
- 7.
These 14 EU member states are responsible for about 90% of the EU heat demand.
- 8.
Nevertheless, there are district heating systems, which transport the heat up to about 50 km to the customers.
References
Albadi, M., & El-Saadany, E. (2008). A summary of demand response in electricity markets. Electric Power Systems Research, 78, 1989–1996.
Arbeitsgemeinschaft Energiebilanzen (2020). Anwendungsbilanzen zur Energiebilanz Deutschland. Available at: https://ag-energiebilanzen.de/wp-content/uploads/2020/10/ageb_20v_v1.pdf [Accessed May 27, 2022].
BDEW. (2019). Nettostromverbrauch nach Verbrauchergruppen. Available at: https://www.bdew.de/service/daten-und-grafiken/nettostromverbrauch-nach-verbrauchergruppen/ [Accessed May 5, 2019].
Boßmann, T. (2015). The contribution of electricity consumers to peak shaving and the integration of renewable energy sources by means of demand response. Fraunhofer Verlag and Dissertation: Karlsruhe Institute of Technology (KIT).
Boiteux, M. (1960). Peak-load pricing. The Journal of Business, 33, 157–179.
DoE. (2006). Benefits of demand response in electricity markets and recommendations for achieving them. Technical report. Washington. U.S. Department of Energy. Available at: https://www.energy.gov/sites/default/files/oeprod/DocumentsandMedia/DOE_Benefits_of_Demand_Response_in_Electricity_Markets_and_Recommendations_for_Achieving_Them_Report_to_Congress.pdf [Accessed May 27, 2022].
Eurostat. (2019). Supply, transformation and consumption of electricity, Final energy demand by sectors, Table nrg_cb_e. Available at: https://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=nrg_cb_e&lang=en [Accessed April 19, 2019].
Fraunhofer ISI, IREES, & TEP. (2015). FORECAST/eLOAD. Available at: http://www.forecast-model.eu/forecast-wAssets/img/methodology/forecast_tabelle_05.png [Accessed May 5, 2019].
Joskow, P., & Wolfram, C. (2012). Dynamic pricing of electricity. American Economic Review, 102, 381–385.
Kaschub, T. (2017). Batteriespeicher in Haushalten unter Berücksichtigung von Photovoltaik, Elektrofahrzeugen und Nachfragesteuerung Produktion und Energie (23). KIT Scientific Publishing and Dissertation: Karlsruhe Institute of Technology (KIT).
Kostkova, K., Omelina, L., Kycina, P., & Jamrich, P. (2013). An introduction to load management. Electric Power Systems Research, 95, 184–191.
McKenna, R., & Norman, J. (2010). Spatial modelling of industrial heat loads and recovery potentials in the UK. Energy Policy, 38, 5878–5891.
McLoughlin, F., Duffy, A., & Conlon, M. (2010). The generation of domestic electricity load profiles through Markov chain modelling. Euro-Asian Journal of Sustainable Energy Development Policy, 3.
Möst, D., & Keles, D. (2010). A survey of stochastic modelling approaches for liberalised electricity markets. European Journal of Operational Research, 207, 543–556.
Oberascher, C. (2013). Stromverbrauch und Stromverwendung der privaten Haushalte in Deutschland. Ergebnisse einer Studie im Auftrag von HEA, BDEW und EnergieAgentur.NRW, 2012. Available at: https://www.yumpu.com/de/document/view/10605406/energieverbrauch-und-energieverwendung-im-haushalt-hea [Accessed May 26, 2022].
Oren, S. (2012). Nonlinear pricing. In Özer, Ö., & Phillips, R. (Eds.), The Oxford handbook of pricing management. Oxford University Press. Available at: https://doi.org/10.1093/oxfordhb/9780199543175.013.0022 [Accessed May 27, 2022].
Paardekooper, S., Lund, R. S., Mathiesen, B. V., Chang, M., Petersen, U. R., Grundahl, L., David, A., Dahlbæk, J., Kapetanakis, I. A., Lund, H., Bertelsen, N., Hansen, K., Drysdale, D. W., & Persson, U. (2018). Heat Roadmap Europe 4: Quantifying the Impact of Low-Carbon Heating and Cooling Roadmaps. Aalborg Universitetsforlag.
Ströbele, W., Heuterkes, M., & Pfaffenberger, W. (2010). Energiewirtschaft - Einführung in Theorie und Politik (2nd ed.). Oldenbourg.
Weron, R. (2014). Electricity price forecasting: A review of the state-of-the-art with a look into the future. International Journal of Forecasting, 30, 1030–1081.
Zweifel, P., Praktinjo, A., & Erdmann, G. (2017). Energy economics—Theory and applications. Springer.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
Copyright information
© 2022 The Author(s), under exclusive license to Springer Nature Switzerland AG
About this chapter
Cite this chapter
Weber, C., Möst, D., Fichtner, W. (2022). Energy Demand. In: Economics of Power Systems. Springer Texts in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-030-97770-2_3
Download citation
DOI: https://doi.org/10.1007/978-3-030-97770-2_3
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-97769-6
Online ISBN: 978-3-030-97770-2
eBook Packages: Economics and FinanceEconomics and Finance (R0)