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A middle-out strategy for shaving summer peak demand: findings from a field study

Panel: 5. Smart and sustainable communities

Authors:
Yael Parag, School of Sustainability, Interdisciplinary Center (IDC), Israel
Tali Zohar, Haifa University, Israel
Ofira Ayalon, Haifa University, Israel

Abstract

July and August are the warmest months of the Israeli summer, with temperatures rising daily above 30°C. The air-conditioner penetration rate is higher than 90%, and during summer middays they are responsible for more than 50% of residential electricity consumption. Because Israel's electricity generation is based on fossil fuels, the mid-week summer peak demand hours (10:00-17:00) are the most expensive and polluting. Thus, ‘peak shaving’ has both economic and environmental benefits.

In a first of its kind, controlled field study, a 'middle out' (MO) strategy was developed and applied for reducing mid-week summer peak demand in two local communities (Kibbutzim). The MO strategy focuses on middle actors as agents that can induce change from the middle out, exerting influence via their networks in three directions: downstream (on end users), upstream (on suppliers and regulators) and sideways (on other communities). All interventions in the study were discussed with and mediated through the local middle actors (community key-figures) and middle platforms (communication channels and procedures).

The study took place in the summer of 2018 in two Israeli Kibbutzim, Yakum and Hazorea (n(Y)=66, n(H)=258 households). In both Y&H: (a) demand was monitored via smart meters, (b) generic and tailored SMS messages were sent twice a week during peak hours, and (c) economic incentive (~$43) was offered to households that either saved 10% of their electricity during peak hours compared to 2017 or 10% in August 2018 compared to July 2018. The interventions differed in the level and intensity of the middle actors’ involvement (in H more intense than Y), and in the type of community engagement activities that took place: four engagement activities in H, none in Y. Additional data was collected in surveys and interviews.

Analysis shows that a third of the participants reduced their peak consumption by 10%, with an average reduction of 4.5% (Y) and 6% (H). We used two benchmarks for evaluation: (1) a comparison to non-participating households in Kibbutz Y, which increased consumption during the same period, (2) a comparison to a previous project (2016), in which a similar economic incentive ($45) was offered in Y and H, but no middle actor involvement or engagement activity took place. In 2016 consumption increased by 6% (Y) and 2% (H) compared to 2015. Survey analysis indicates that in H the economic incentive was ranked low in terms of its perceived contribution to motivation, while in Y it was ranked high. The SMS reminders were ranked as less effective in H compared to Y. Results suggest that given a similar economic incentive, community engagement activities and intense involvement of middle actors have a higher impact on demand reduction compared to middle actors’ involvement alone.

Interim findings from interviews indicate that middle actors in both Kibbutzim are interested in repeating the project next year. Middle actors in Kibbutz Y believe that had community engagement activities been held, greater reductions would have been achieved. In addition, some middle actors discussed the project with middle actors from other Kibbutzim and with leading figures in the Kibbutzim organization. A few other Kibbutzim expressed interest in conducting a similar project in their Kibbutz. Furthermore, the Kibbutz Economies Group (Mishkei HaKibbutzim) and Dalia Power Company (in which Mishkei is a shareholder) are currently interested in repeating and expanding the project next year.

While the research looked more closely at the downstream impact, overall, a middle out impact of the MO strategy was demonstrated: a downstream impact - end users reduced their peak consumption; a sideways impact - middle actors from other Kibbutzim indicated their interest in conducting such a project next summer; and an upstream impact - the Kibbutzim organization and a large electricity company indicated their interest in supporting similar projects next year.

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