The value of reducing distribution losses by domestic load-shifting: a network perspective

Shifting domestic load to off-peak time periods could potentially reduce electrical distribution losses and associated carbon emissions. This paper provides the first quantitative estimate of the possible reduction in losses, for a situation where domestic energy demand is shifted in time but not reduced. At a likely 0.02% of energy distributed by the network, the reduction is small relative to overall losses and to their variability, giving little rationale for distribution network operators in Great Britain to encourage such load-shifting for that reason. The paper also considers the limited regulatory incentives for the reduction, and the fragmentation of costs and benefits across different parties. The societal value is considerably higher than the current regulatory incentive, but nonetheless may still not warrant the cost of action. Reducing rather than shifting load is likely to give greater environmental benefits. (C) 2009 Elsevier Ltd. All rights reserved.