Prioritize your heat pump or electric vehicle? Analysing design preferences for Direct Load Control programmes in Swiss households

Direct Load Control (DLC) of heat pumps and electric vehicles (EVs) could offer great potential to decarbonize the distribution grid network by aligning demand with intermittent renewable technologies as well as avoiding congestion during peak times. However, little is known about consumer preferences for different designs of a DLC programme and their reasonings. To address this gap, this study investigates the preferences for the design of DLC programmes for heat pumps and EVs, using a discrete choice experiment on a sample of 556 respondents residing in Switzerland. We then propose a theoretical framework to provide insights into the underlying reasons such as social-psychological factors and perceptions for those preferences. We applied a multinomial logit analysis to elicit the preferences and found that overall sample was more sensitive to financial incentives for the DLC for heat pumps whereas more sensitive to the overriding option for the DLC for EVs. We then estimated a latent class choice model to explore the heterogeneity in preferences, identifying three distinct classes that vary in their preferences of different attributes. The model suggests that the preferences for the design are influenced mainly by perceived concerns related to being too dependent on the DLC programmes, trust in the utility company that they are transparent when providing information, attitude towards and knowledge on DLC programmes. Utilities will need to carefully address these issues in the programme design to ensure a widespread acceptance.

Automated summary

This study investigates preferences for the design of DLC programmes for heat pumps and EVs, finding that respondents were more sensitive to financial incentives for heat pumps but more concerned with the overriding option for EVs. The model suggests that preferences are influenced by perceived concerns related to being too dependent on DLC programmes, trust in the utility company, attitude towards and knowledge on DLC programmes.