Consumer Preferences and Acceptance of Compensation Schemes for Controlled Power Shutdowns in Germany: Results from a Choice Experiment

In the near future, local grid congestion is expected to increase due to the rising deployment of renewable energy and electrification on the demand side. Despite the introduction of demand response schemes, grid operators may need to resort to controlled power shutdowns for individual consumers to manage local grid congestion. These measures necessitate consumer acceptance to ensure grid stability. This study assesses the willingness-to-accept (WTA) of compensating households for participating in such controlled power shutdowns. To do so, we first conducted a choice experiment involving 682 German consumers. We use a mixed logit model to examine their preferences regarding the design of compensation schemes, considering duration, frequency, and pre-warning time for the acceptance of controlled power shutdowns. Furthermore, the overall acceptance of the tariff-design as well as the sociodemographic and household characteristics are analyzed to uncover potential preference drivers. First results show that duration and frequency have a negative influence, whereas pre-warning time and compensation have a positive influence on the utility.