Swedish Consumers' Perception of Virtual Power Plants : A mixed-method study of VPPs

Abstract: The phenomenon of Virtual Power Plant (VPP) has gained increased attention in many parts of the world in recent years. In 2022 the European Union, in response to the rising energy prices as well as the ongoing Russian invasion of Ukraine, set a goal of speeding up the process of creating a digital energy system (European Commission, 2022, p. 20). VPP is the/a solution to the problem, and the EU is set to start its deployment of a common European energy data space no later than 2024 (European Commission, 2022, p. 3).  Previous academic research on VPP has been conducted on the technical aspects of the phenomenon and the adoption of VPP has not been approached from a consumer standpoint. We therefore identified a research gap, since, to the best of our knowledge, no qualitative or quantitative research has been conducted in the area of acceptance of VPP by individuals or households. We could see that there is a need for this type of research due to the goals set by the European Union, and the lack of current research. To fulfill the purpose of our study, we draw on the literatures on supplier switching in homogenous markets, innovation adoption, and technology acceptance to develop a conceptual framework and further empirically extend it via a mixed-method approach. The qualitative component of the study consists of three online on-on-one interviews, conducted with the help of a discussion guide. The interviewees selected were considered to be appropriate participants, suited for our study. The interviews gave us a deeper understanding of how VPP came across to the Swedish consumer, as well as how it was perceived by them. The quantitative study was done by the means of a survey of 75 respondents, enabling us to conduct a set of linear regressions in order to test our hypotheses.  Through our mixed-method study, we were able to develop an integrative framework, showcasing factors related to Swedish consumers’ intention to partake in VPP. We could conclude that Swedish consumers see value in VPP, and that there is curiosity related to the topic which indicates that there is an interest to explore and partake in VPP. We further discuss a range of recommendations to policy-makers and energy providers, as well as the potential contributions of VPP to the two important social aspects: sustainability and energy security.