Evaluating demand response through the time of use model in off-grid regions

Abstract

Motivated by the goal of increasing the use of renewable energies as a vital part of the energy transition, altering energy consumption in off-grid areas, and involving consumers in the decision-making process of the electricity market, demand response programs are considered essential measures to achieve these goals without requiring highly advanced technologies. The research findings demonstrate that the time-of-use model aids the transition to cleaner energy, offering multiple benefits to consumers.These benefits include reduced energy bills, enhanced quality of life due to lower CO2 emissions, decreased energy subsidies, and reduced dependency on diesel fuel for electricity generation in regions where approximately 84 % of the capacity is derived from diesel. An innovative aspect of this study is proposing the transition from a quasi-inelastic to elastic demand electricity market in off-grid areas in Colombia, based on the evaluated benefits of the Time of Use Model over a specific time horizon. The principal reduction results related to the base consumption in the case study are as follows: peak hours (52.5 kWh/day), hours of maximum solar radiation (203.2 kWh/day), and CO₂ emissions (10 TonEq/year). These findings confirm that demand response is critical in enabling and facilitating the energy transition in off-grid regions, where renewable energy sources and economic incentives are underutilized