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Study on Consumers’ Perceived Benefits and Risks of Smart Energy System

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Abstract

This study explores consumer perceptions of smart energy systems, delving into both the perceived benefits and risks associated with their adoption and usage. This study addresses a crucial gap in understanding the consumer side of smart energy system implementation. Through ordinal logistic regression analysis, the study examines the relationship between various independent variables and an ordinal dependent variable represented on a Likert scale. The findings highlight a significant consumer emphasis on 'Safe Energy System Construction' and 'Economic Benefits,' including 'Home Energy Saving' and 'New Profit Creation.' However, the perceived benefits and risks are influenced by these factors and individual propensities, such as sensitivity to environmental destruction and acceptance of new technology. The study uncovers new areas of concern, exceptionally high energy consumption and the 'Uncertainty of Electricity Rates,' which have not been extensively addressed in previous research. The conclusions drawn from this study suggest a need for balanced policy-making that fosters technological advancement while addressing consumer apprehensions about energy consumption, rate volatility, and privacy. This study contributes to the broader discourse on technology acceptance and the sustainable implementation of smart energy solutions by providing a nuanced understanding of consumer perceptions in the evolving landscape of smart energy systems.

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... When individuals believe in their ability to understand and effectively use technology, they are more inclined to take actions that facilitate its adoption [69]. High self-efficacy can lead to greater exploration of renewable energy benefits, overcoming barriers, and sustained use of the technology [67]. Conversely, low self-efficacy may result in a reluctance to engage with the technology, fear of failure, and ultimately lower adoption rates. ...
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The electrical grid in the United States comprises all of the power plants generating electricity, together with the transmission and distribution lines and systems that bring power to end-use customers. The "grid" also connects the many publicly and privately owned electric utility and power companies in different states and regions of the United States. However, with changes in federal law, regulatory changes, and the aging of the electric power infrastructure as drivers, the grid is changing from a largely patchwork system built to serve the needs of individual electric utility companies to essentially a national interconnected system, accommodating massive transfers of electrical energy among regions of the United States. The modernization of the grid to accommodate today's more complex power flows, serve reliability needs, and meet future projected uses is leading to the incorporation of electronic intelligence capabilities for power control purposes and operations monitoring. The "Smart Grid" is the name given to this evolving intelligent electric power network. The U.S. Department of Energy (DOE) describes the Smart Grid as "an intelligent electricity grid-one that uses digital communications technology, information systems, and automation to detect and react to local changes in usage, improve system operating efficiency, and, in turn, reduce operating costs while maintaining high system reliability." In 2007, Congress passed the Energy Independence and Security Act (P.L. 110-140). Title XIII of the act described characteristics of the Smart Grid and directed DOE to establish a Smart Grid Investment Matching Grant (SGIG) program to help support the modernization of the nation's electricity system. In 2014, DOE concluded that the adoption of Smart Grid technologies was accelerating but at varying rates "depending largely on decision-making at utility, state, and local levels." DOE noted that the nation's electricity system is in the midst of "potentially transformative change," with challenges for Smart Grid deployment remaining with respect to grid-connected renewable and distributed energy sources and adaptability to current and future consumer-oriented applications. Costs of deploying the Smart Grid remains an issue, and study estimates vary. While some DOE programs have supported grid modernization, Congress has not explicitly appropriated funding for deployment of the Smart Grid since the American Recovery and Reinvestment Act of 2009 (P.L. 111-5). In its 2014 study, DOE estimated historical and forecast investment in the Smart Grid as approximately 32.5billionbetween2008and2017,averaging32.5 billion between 2008 and 2017, averaging 3.61 billion annually in the period. If this level of investment remains constant, it would put spending well below levels the Electric Power Research Institute (in 2011) and the Brattle Group (in 2008) estimated were needed to fully build the Smart Grid by approximately 2030. From 2010 to 2015, 3.4billioninSGIGgrantssupported99projectsresultingin3.4 billion in SGIG grants supported 99 projects resulting in 8 billion in grid modernization. Congress could provide funding to help bridge the funding gap if it chooses to accelerate adoption of the Smart Grid. A number of near-term trends-including electric vehicles, environmental concerns, and the ability of customers to take advantage of real-time pricing programs to reduce consumer cost and energy demand-would benefit from investments in Smart Grid enabled technologies. While concerns such as cybersecurity and privacy exist, most electric utilities appear to view Smart Grid systems positively. Costs could be reduced and system resiliency improved by further integration of automated switches and sensors, even considering the cost of a more cybersecure environment. But with the potentially high costs of a formal transition, some see the deployment of the Smart Grid continuing much the same as it has, with a gradual modernization of the system as older components are replaced.
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This study examines factors influencing the risk perception of Internet of Things (IoT) services in the home energy management sector. We focus on investigating the effects of the various types of perceived risks and individuals’ propensities on the overall risk perception of the IoT services and explore some demographic variables. The perceived risks include perceived financial risk, perceived performance risk, perceived security/privacy risk, and perceived electromagnetic radiation (EMR) risk. The individuals’ propensities include the sensitivity to electricity price changes, environmental destruction, and new technology acceptance. As a result, this study confirms the existence of various influencing factors in the risk perception of the IoT-based home energy management services. Perceived EMR risk is the most influential one among the various types of perceived risks of the services, followed by perceived performance risk and perceived security/privacy risk. In general, experts point out cybersecurity threats as a weakness of ICT services, but users are more likely to have fear of the EMR. Moreover, sensitivity to electricity price changes and sensitivity to new technology acceptance are significant factors. This study has a significance in that we explore various factors affecting the risk perception of IoT services in the energy management sector in detail and comprehensively. Particularly, we discuss not only perceptions about the IoT services, but also individuals’ propensities. This work may contribute not only to studies on perceived risk and technology acceptance but also to stakeholders trying to market the IoT services to consumers.
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In a low-carbon and sustainable future, smart grids have a key role to play not only in saving energy with demand and supply-side management of energy systems, but also in optimizing the integration of a wider range of generation and storage options including renewable energy sources. Moreover, some challenges can follow the transition from a traditional grid into a smart grid. In this context, “public attitude” and “public acceptance” are major components to make more radical scenarios about the feasible implementation of smart grid technologies and successful integration of renewable energy sources. This paper presents unique survey results of public attitudes towards smart grids, smart meters, renewable energy and environment in Qatar using a representative panel from Qatar University community. It contributes to the literature by providing a better understanding of electricity consumers’ perception and behavior about the possible deployment of smart grid applications. It also aims to create data about public attitudes to inform policy makers, the business community and other stakeholders for decision-making by introducing institutional and regulatory changes, and modifying the relationship between consumers, the government and utilities. The main conclusions can be used as a basis for sustainable energy planning, and awareness campaigns formulation in order to enhance public acceptance regarding renewable energy projects and smart grid technologies. However, the results are a first attempt to elicit public views and will need to be extended to the larger community in Qatar and repeated at regular basis.
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The Smart Grid (SG) is a technological transformation from conventional electric grid, electro-mechanically controlled system, to smart, intelligent, and electronically controlled system called the “Smart Grid” (SG). There are about 20–30% losses present in the conventional electric grid due to substandard operations at generation, transmission and distribution side. The major players in the transformation are: (a) increased electricity cost, (b) aging infrastructure, (c) carbon footprint, (d) Green House Gas emissions, (e) climate change, and (f) less efficient electrical network. The promising features of the Smart Grid are: (a) intelligent de-centralized control, (b) resilience, (c) flexibility, (d) sustainability, (e) digitalization, (f) intelligence, (g) consumer empowerment, (h) green energy, and (i) smart infrastructure. The fundamental issues and open challenges in the SG are lack of awareness, consumer acceptance, cyber terrorism, data collection management, energy metering, dynamic optimization and energy control. Considering above, in this paper, a comprehensive review exploring information of development, technologies, and techniques in the SG. The main goal is to investigate and reveal the key enabling technologies, to obtain better picture about the current status of SG development. The focus areas of this review study are Architectural Model focusing Consumer Empowerment (CE), Demand Response Program (DRP), and Demand Side Management (DSM). Our survey discusses in detail the Communication Technologies, such as Wireless Advance Metering Infrastructure (AMI), Phasor Measurement Unit (PMU), Supervisory Control and Data Acquisition (SCADA), and Machine to Machine Communication (M2M). The power systems such as Micro Grid, Nano Grid, Pico Grid, Inter Grid, Virtual Power Plants, and Distributed Generation are also elaborated in this review study. Renewable Energy Resources (RERs) Integration with the SG and Integration issues related to Distributed generation (DG) are presented in this survey. This survey also analyzes Architectural Model of the Smart Grid focusing consumer empowerment and prosumers interaction. The aim of this study is to provide deep understanding of technologies and their applications in the SG.
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In this study, smart energy systems are investigated and comparatively assessed to solve major global energy-related issues in a sustainable manner. In order to be considered as smart and sustainable, the energy systems should use technologies and resources that are adequate, affordable, clean, and reliable. Therefore, selected smart energy systems are evaluated based on their efficiencies, environmental performance, and energy and material sources. Our results show that increasing the number of products from the same energy source decreases emissions per unit product and increases efficiencies. Also, among the identified sources, geothermal has the most potential in terms of using cleaner technologies with energy conservation, renewability and the possibility of multiple desired products from the same source. Solar, hydro, and biomass are also beneficial. Even with carbon capture technologies, fossil fuels are not very desirable in smart energy systems because of their emissions and non-renewability.
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A deep transformation of the electrical grid system at the global level is expected in the near future, with new economic relations between energy suppliers and consumers. This is the smart grid framework, which can integrate the behavior of all connected users, who become prosumers, to ensure a sustainable energy supply in an efficient, economical and safe manner. Smart grid projects have a significant impact on electricity consumers through shifts in consumer behavior, culture and lifestyle. The aim of this paper is to explore the degree of investigation of the main socio-economic features, in terms of private and social costs, which are relevant for smart grids development and public acceptance. To this aim, a literature review of 148 peer-reviewed scientific journal articles on smart grids has been conducted, developing an original taxonomy for the socio-economic features in terms of private (direct) costs directly associated with the monetary costs paid by consumers, and social (indirect) costs constituted by consumers’ perception, privacy, cyber security and regulation. The importance of the analysis of social costs arising from externalities is that they may hinder the deployment of specific technologies, even if these technologies appear to be useful based on private costs. The results reveal that the explored literature mainly deals with private costs, although an emerging literature starts to address the social costs that may hamper smart grids deployment. The paper reviews new opportunities and challenges for further research, bridging the gap between engineering and socio-economic research areas, including business, organizational applications, policy and security issues. The resulting enrichment of interdisciplinary know-how can be the basis for the sustainable development of current and future generations.
Chapter
Many medical and epidemiologic studies incorporate an ordinal response variable. In some cases an ordinal response Y represents levels of a standard measurement scale such as severity of pain (none, mild, moderate, severe). In other cases, ordinal responses are constructed by specifying a hierarchy of separate endpoints. For example, clinicians may specify an ordering of the severity of several component events and assign patients to the worst event present from among none, heart attack, disabling stroke, and death. Still another use of ordinal response methods is the application of rank-based methods to continuous responses so as to obtain robust inferences. For example, the proportional odds model described later allows for a continuous Y and is really a generalization of the Wilcoxon-Mann-Whitney rank test.
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The term cyber security is often used interchangeably with the term information security. This paper argues that, although there is a substantial overlap between cyber security and information security, these two concepts are not totally analogous. Moreover, the paper posits that cyber security goes beyond the boundaries of traditional information security to include not only the protection of information resources, but also that of other assets, including the person him/herself. In information security, reference to the human factor usually relates to the role(s) of humans in the security process. In cyber security this factor has an additional dimension, namely, the humans as potential targets of cyber attacks or even unknowingly participating in a cyber attack. This additional dimension has ethical implications for society as a whole, since the protection of certain vulnerable groups, for example children, could be seen as a societal responsibility.
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Prepublication version available at http://www.davidjhess.net. Wireless smart meters (WSMs) promise numerous environmental benefits, but they have been installed without full consideration of public acceptance issues. Although societal-implications research and regulatory policy have focused on privacy, security, and accuracy issues, our research indicates that health concerns have played an important role in the public policy debates that have emerged in California. Regulatory bodies do not recognize non-thermal health effects for non-ionizing electromagnetic radiation, but both homeowners and counter-experts have contested the official assurances that WSMs pose no health risks. Similarities and differences with the existing social science literature on mobile phone masts are discussed, as are the broader political implications of framing an alternative policy based on an opt-out choice. The research suggests conditions under which health-oriented precautionary politics can be particularly effective, namely, if there is a mandatory technology, a network of counter-experts, and a broader context of democratic contestation.
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Purpose The purpose of this paper is to analyse how consumer innovativeness can be used as a variable to positively influence internet banking adoption both directly and reducing consumer perceived risk. Design/methodology/approach The impact of innovativeness and risk on internet banking adoption has been tested through structural equation modelling techniques. The sample consists of 511 Spanish internet banking services users accessed through an internet survey. Risk has been measured as a formative construct. Findings Results reveals consumer innovativeness as a key construct to improve e‐banking adoption both directly and by its effective role in reducing consumer risk perception of using internet channel in the financial services context. Practical implications Practical guidelines are provided to bank managers on how to use consumer innovativeness level as a segmentation variable to increase the use of internet banking among actual customers who are non users or light users of the electronic channel. Originality/value There is a lack of studies which connect consumer innovativeness and perceived risk in the electronic commerce context and specially on e‐banking research. Formative configuration of risk is quite an innovative approach to measure this construct.
Article
This study presents an extended technology acceptance model that integrates innovation diffusion theory to investigate what determine user mobile commerce acceptance. This paper models the factors relationships such as perceived usefulness, perceived ease of use, personal innovativeness, subjective norms, behavioral control and intention to adopt mobile commerce. The proposed model was empirically tested using data collected from a survey of mobile commerce consumers. Empirical data from regression analysis reflects users ease of use influence behavioral intention to adopt mobile commerce. The majority of positive relationships between perceived ease of use, subjective norms, behavioral control and intention to adopt are supported by empirical data. Results also reveal that behavioral control and subjective norms influence perceived ease of use which affects then their adoption intention. The paper concludes some important implications for the practitioners.