Demand response in the service sector – setting course for energy flexibility and efficiency

Panel: 5. Buildings and construction technologies and systems

This is a peer-reviewed paper.

Authors:
Katharina Wohlfarth, Fraunhofer Institute for Systems and Innovation Research, Germany
Marian Klobasa, Fraunhofer ISI, Germany
Anke Eßer, Fraunhofer ISI, Germany
Deniz Cöl, Fraunhofer ISI

Abstract

The increasing share of renewable energies in electricity generation is within the scope of energy transition, but will lead to a more volatile electricity generation. A flexible energy demand is an option to use the volatilely energy efficiently and to handle the resulting challenges in electricity grid management. The service sector is a target groups for this so-called demand side management. Supermarkets, hotels and office buildings are spread across all regions. In addition, more flexible crosscutting technologies than in industry exist, which have a particularly high flexibility potential. However, currently there is lesser knowledge about flexibility options in the service sector than in industry. Moreover, market barriers such as a missing adequate regulatory framework offering incentives prevent to tap the potential.

Therefore, we analyse survey data from 1.000 companies of the service sector in Germany to identify subsectors that have a high share of flexible crosscutting technologies in electricity consumption. Data indicates that trade, restaurants and hotels as well as office-like buildings are the most promising subsectors regarding flexibility potential. In a second step, we evaluate stakeholder interviews, to find individual barriers and starting points to tap the potential in the identified subsectors. They indicate that framework conditions promoting demand response measures seem to be improving. However, still unapt regulatory framework conditions, low profitability and a lack of knowledge and marketing mechanisms seem to be the main barriers. This indicates that to tap the existing demand response potentials in the service sector, the value of flexibility in demand needs to be appreciated, e.g. by facilitating market participation or by creating offers rewarding the enterprises’ flexibility of demand. In addition addressing demand response issues in already existing policy measures such as energy audits could raise awareness and knowledge.