Assessing consumer readiness for participation in IoT-based demand response business models

Abstract

The paper studies the consumer readiness for participation in new business models for demand response in electricity markets. The main premise is that consumers' attitudes, if considered during the development, ensure that the business model meets the interests of the consumers, while still maintaining a focus on its original purpose. The goal of the paper is twofold: to develop a new business model suitable for a developing electricity market, that enables customer participation in the demand response services, and to analyze customer readiness to participate in the developed model. The proposed business model relies on internet of things, as a technology that provides customers with an easy way to participate in demand response services. The customers' attitudes towards various incentives, such as green energy, environmental protection, profit and interest in new technologies, as well as trust in the market operator were taken into consideration. The results indicate that different service packages can be created for different types of customers depending on individual characteristics. Additionally, results show that consumers show interest in environmental conservation, while they prefer state institutions as service operators. Using the gathered results, new insights can be gained into demand response user acceptance, and further business strategies formulated.