Flexible electricity use: Exploring consumer understanding and perceptions

This research aims to gauge the understanding of flexible electricity use among New Zealanders, how these concepts vary between different demographics and how they can be communicated effectively to engage the public. The research engaged 32 New Zealanders of different backgrounds and locations around the country.

Building awareness of flexible energy use 

Electricity demand in New Zealand is becoming increasingly dynamic. As more households adopt technologies such as EVs, solar panels, and smart appliances, this presents an opportunity for periods of high and low demand to be better managed through demand flexibility — the ability to shift or reduce electricity use in response to signals such as time of day, price, or demand peaks. 

Demand flexibility will allow for households to save money on their power bills, consuming electricity at times when it costs less. However, the term “demand flexibility”, while widely used by industry, is technical and may not be well understood or resonate with the general public. There are also several similar and conflicting names for related technologies and practices. 

This means there is a need to test terminology and language around demand flexibility with the purpose of having one, consistent and coherent name and message, that resonates with New Zealanders — as we expand our efforts across this critically important area. 

The research will contribute to EECA’s work building confidence around managing energy use - across households, business, and communities. Information provision plays an important role in promoting practices and technologies that improve energy efficiency and increase renewable energy use, at scale.

Consumers do not tend to think about grid capacity 

Most consumers have not previously considered grid capacity and the infrastructure that surrounds it. Similarly, most believe that off-peak pricing is primarily a marketing and profit maximisation strategy used by power companies and do not connect it to grid capacity.  

Scepticism about power companies impacts attitudes 

Although they were not the subject of focus group discussions, consumers often focused their concerns on the role of power companies. 

There is a prevailing mistrust of power companies and lack of faith that they will allow consumers to make meaningful savings. Consumers are particularly concerned about the idea of power companies having control of their energy use. 

Saving money and retaining control are critical to motivate participation in demand flexibility 

To feel motivated to participate, consumers need to believe that participation will enable them to make meaningful savings on their bills. To feel comfortable with participation, consumers need reassurance that they will retain the agency to use power when they need to.  

Consumers are also concerned that any inability to participate could force them to accept significant disadvantages and penalties. 

Consumers struggle to see opportunities to shift power use 

When consumers reflect on the underlying principle of shifting energy use to reduce pressure on the grid and save money, they see it as a good idea that they support in principle. 

However, when they think practically about their life and the times that they use energy, they struggle to see many opportunities to shift away from peak times due to their work and household commitments.