An Incentive-Based Framework for Small-Load Flexibility Providers: Insights from a Pre-Test of a Discrete Choice Experiment

Abstract

This research addresses a critical gap in the literature on demand-side flexibility by evaluating how a combination of monetary and non-monetary incentives can effectively engage Small-Load Flexibility Providers (SLFPs) in electricity markets. Using Discrete Choice Experiments (DCE), the study tests an Incentive-Based Framework to identify the most valued attributes by SLFPs. Four key attributes were selected: monetary incentives (e.g., financial rewards), non-monetary benefits (e.g., environmental impact), surcharge mechanisms, and ancillary economic benefits. This pre-test provides insights into consumer preferences and sets the stage for large-scale deployment.