Feasibility Study of Energy Price Dependent Consumption in Nordic Countries

Abstract

This thesis investigates the feasibility of shifting household energy consumption in response to real-time pricing in Nordic countries, with a focus on Finland. Utilizing data from Nord Pool for electricity prices, household consumption patterns, and external temperatures, the study evaluates the potential savings and practicality of adjusting energy usage to coincide with periods of lower energy prices. Through a mixed-methods approach, both quantitative and qualitative analyses reveal a strong correlation between electricity prices, consumption, and temperatures, demonstrating substantial opportunities for cost savings. The research also assesses the impact of smart grid technologies on enhancing time- shifted consumption, highlighting the critical role of consumer adaptability and technology in achieving energy efficiency. Despite challenges such as the initial investment in smart technologies, findings indicate that time-shifted consumption is a viable strategy for reducing energy costs and promoting grid stability. The thesis contributes to the discourse on sustainable energy management and suggests further research into the scalability of these strategies and their long-term financial impacts. This work offers insights for policymakers, energy providers, and consumers on leveraging real-time pricing for economic and environmental benefits.