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Three Essays on Price and Weather Responses of Commercial and Industrial Customers in Hawaii.

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Title:Three Essays on Price and Weather Responses of Commercial and Industrial Customers in Hawaii.
Authors:Oshiro, Asahi
Contributors:Economics (department)
Date Issued:Aug 2018
Publisher:University of Hawaiʻi at Mānoa
Abstract:The electricity market is now facing a crossroad, due to rises in new technologies such as energy
efficient appliances, renewable energy systems, and smart meters. The introduction of renewable
energy resources has put pressure on the traditional grid. The energy market must undergo drastic
changes in terms of demand and supply side management to meet the rise in new technologies.
This includes new pricing schemes to signal customers to avoid consuming energy during peak
times, demand response programs, and energy efficiency. However, increasing levels of behind
the meter technology has made customer demand less transparent, and harder to implement
demand side programs without fully understanding how consumers respond to prices or weather
changes. Hence, there is increased need to improve existing models of energy demand modeling.
Because we do not know how commercial and industrial (C&I) sector demand, this study tries
to characterize consumer energy demand for the C&I sectors. Through the analysis this paper
finds that certain customers are indeed more price responsive than others, certain sectors are
temperature sensitive, and there are winners when an alternative pricing structure is introduced.
This paper makes several contributions to the existing literature. First, consumption behavior
of sectors within the C&I sector is unclear as studies on the effects of price energy consumption
of C&I sectors are sparse when the share of end use electricity is significantly larger than the
residential sector. Hence, C&I customers are ideal targets for demand side management practices
because they have a larger contribution to the system compared to residential customers. Second,
this paper reveals which types of customers experience benefits in the form of decreased bills
under marginal cost pricing. Finally, this paper helps understand how C&I customers alter their
electricity consumption to a response in temperature and price.
Description:Ph.D. Thesis. University of Hawaiʻi at Mānoa 2018.
URI:http://hdl.handle.net/10125/62330
Rights:All UHM dissertations and theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission from the copyright owner.
Appears in Collections: Ph.D. - Economics


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