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Decreasing costs of distributed generation and storage, alongside increasing network charges, provide consumers with a growing incentive to defect from the main grid. On a large scale, this may lead to price inflation, hindrance of the energy transition, and even a “death spiral” – a domino effect of disconnections. Here, we develop a game-theoretic framework that demonstrates how conflicting interests among consumers — an aspect that previous studies overlooked — may lead to complex dynamics of grid defection. Our results reveal that although individual consumers benefit from staying connected at the distribution level, the defection of small energy communities from the grid may lead to the defection of larger communities. We also demonstrate that centralized design approaches may lead to inefficient outcomes, e.g., redundant grid expansions, because of the inherent inability to predict potential defections. However, we indicate how, by properly incorporating defection considerations into the grid’s design, social welfare can be improved.

This paper addresses the costs and benefits associated with microgrid development relative to the costs and benefits of conventional generation interconnected to a bulk transmission and distribution grid. The costs and benefits are classified as: environmental (avoided environmental damage costs); economic (mainly employment multiplier effects); deferral or avoidance of transmission and distribution investment costs; and greater access to electricity supply that is highly reliable and resilient. Deficiencies due to the lack of relevant available data and of research on economic modeling of microgrids at the societal level are discussed. The context in which these costs and benefits are measured is the Israeli electricity market, which features a highly centralized, vertically integrated electricity company (Israel Electric Corporation, IEC) with some legacy distribution companies. Moreover, because Israel’s transmission and distribution infrastructure investment have declined significantly over the past several years, the Israeli market provides a useful basis for analyses of microgrids as an alternative to such large-scale investments. The analysis reveals that under reasonable assumptions reflecting the current state of microgrid technologies, microgrids may constitute a viable, cost-effective alternative to additional central- station generation requiring new investments in transmission and distribution infrastructure. Specifically, using reasonable assumptions regarding 10-MW incremental investments in a microgrid and in central-station generation with necessary transmission and distribution investments, the analysis indicates that, when considering the reliability, T&D investment deferral, local economic, environmental, and social costs and benefits of each alternative, the net benefits to the Israeli economy from selecting the incremental 10-MW investment in a representative Israeli microgrid may exceed $13,000,000 per year. However, when local economic benefits are not considered, the net benefits decline to approximately $260,000 per year. For perspective, generation capacity additions by the Israel Electric Corporation have averaged 166 MW from 2008 through 2018, reaching 13,775 MW of installed capacity by the end of 2018. Total annual capital investment has averaged approximately $1 billion since 2015, about $400 million of which has been in the generation sector. The paper concludes with future research directions, with an emphasis on integrating engineering analysis, scenario simulation, flexibility, and quantifying social/equity (“fairness”) effects of microgrids.

Microgrids are now emerging from lab benches and pilot demonstration sites into commercial markets, driven by technological improvements, falling costs, a proven track record, and growing recognition of their benefits. They are being used to improve reliability and resilience of electrical grids, to manage the addition of distributed clean energy resources like wind and solar photovoltaic (PV) generation to reduce fossil fuel emissions, and to provide electricity in areas not served by centralized electrical infrastructure. This review article (1) explains what a microgrid is, and (2) provides a multi-disciplinary portrait of today's microgrid drivers, real-world applications, challenges, and future prospects.

The European Commission envisages smart home technology (SHT) as reducing energy costs and simplifying consumer engagement in a low-carbon-energy retail market without inconveniencing them. With consumers’ consent, SHT allows continuous seamless interaction between the home and the smart grid, offering the grid ongoing demand flexibility resources for reshaping the demand curve. This study assesses perceptions of a nontechnophobic segment of the Israeli public (N = 554) regarding demand flexibility and energy management through SHT. Sociodemographic variables, personality traits, and attitudes toward smart homes and demand flexibility through SHT were examined as predictors of consumers’ interest in adopting a smart home and in demand flexibility through SHT. In a hierarchical linear regression model, gender, income, openness to experience, and positive and negative attitudes toward SHT explained 64.4% of the variance in interest in smart homes. Age, openness to experience, a positive attitude toward smart homes, and perceived benefits of demand flexibility explained 31.4% of the variance in interest in demand flexibility through SHT. Regarding respondents’ willingness to allow SHT to manage appliances, dishwashers scored the highest and refrigerators, the lowest. Findings indicate that prospective adopters value the perceived benefits of comfort and convenience over risks associated with smart home technology.

Technological advances allow electricity consumers to become ‘prosumers’, offering services to the grid, such as generation, demand reduction, load shifting and electricity storage. Well-integrated prosumers improve the resilience and efficiency of the energy system and facilitate the integration of renewable energy, improving energy and climate security. These technologies, however, change how energy services are experienced. Understanding public perceptions is necessary prior to widespread introduction. A 2015 survey (n = 509) investigated perceptions of demand reduction, load shifting and energy storage technologies as prosumer activities in Israel. Israelis showed little interest in remote controlled household appliances to facilitate load shifting, preferring to respond personally via smart controls to information communicated by the grid. There was similar low interest in permitting grid access to electricity stored in personal electric vehicle batteries. Financial incentives increased acceptance in both cases to a third of respondents. The survey identified various barriers to acceptance: health and privacy concerns about smart meters; low trust in the institutions overseeing these technologies; perceived low public support to reduce electricity demand; how incentives were framed and no perceived relationship with meeting national energy priorities such as affordability and energy independence. The young and the observant Jewish community showed greatest acceptance of new technologies.

The residential sector's electricity consumption during peak hours is significant. Reducing it would be valuable in economic and environmental terms, particularly for isolated grids and ‘electricity islands'. While time-of-use (TOU) programs could help moderate this demand, in many countries such programs are voluntary, with low enrollment rates. An experimental survey design was used to test the impact of four framings of a residential TOU program on the stated willingness of 452 large Israeli households (four or more people) to enroll in a TOU program. Two of the framings emphasized the economic benefits of the program, and offered 25% and 50% off-peak discount rates. The other two framings highlighted environmental benefits and national energy independence (in addition to the discount). The impact of socio-demographic variables, demand flexibility, convenience, environmental awareness and interest in automation were also evaluated. While no framing effect was found, a hierarchical regression model (R2 = 66%) revealed that the strongest predictor of interest in enrollment is the perception that the TOU program will contribute to the environment and to the county's energy independence, followed by the potential economic benefits to the household and flexibility of demand. None of the socio-demographic variables was a predictor. The results suggest that highlighting national benefits might be more effective than highlighting household benefits in fostering enrollment in TOU programs.

The middle-out perspective (MOP) is a relatively new analytical perspective that provides a unique lens to examine the impact of middle actors on action, inaction, change, and stagnation. This research explores the middle-out mechanism and is the first to intersect the various components of the MOP: directions of influence (upwards, downward, and sideways), modes of influence (aggregating, mediating, and enabling), and actors' levels of agency (interest and willingness to act) and capacity (ability to act). The study focuses on one middle actor: Meshek Renewables (MR), an entrepreneurial company in the Israeli energy arena. Through a detailed intersectional analysis, the roles that MR fills in overcoming barriers to transition in two domains are examined: (1) decarbonizing the transport system, and (2) increasing the share of PV in the electricity generation mix. The analysis demonstrates how, by using its assets and resources, MR raised other top, bottom, and middle actors' interest in implementing new energy technologies and improved their abilities to integrate low-carbon energy solutions and promote electric vehicles. Understanding the middle-out mechanism contributes to recognizing the qualities and assets middle-actors need to effectively overcome barriers to action associated with other actors' agency and capacity.

In a first of its kind, controlled field study, a middle-out strategy (MOS) was developed and applied in an aim to shave mid-week summer peak demand. The MOS focuses on middle actors as agents that can induce change from the middle-out, exerting influence via their networks in three directions: downstream (on end-users), upstream (on suppliers and regulators) and sideways (on other communities). The study was conducted in the summer of 2018 in two Israeli local communities (n = 66, n =258 households) and focused on the downstream impact. In both communities: (a) demand was monitored via smart meters, (b) generic and tailored text messages were sent twice a week during peak hours, and (c) economic incentive was offered to households that either saved 10% of their electricity during peak hours compared to the previous year, or 10% in August 2018 compared to July 2018. In one community, an additional four engagement activities took place. All interventions were mediated through local middle actors and middle platforms and differed in the level of the middle actors’ involvement. Additional data was collected via survey and interviews. A downstream impact was demonstrated when about one-third of the participating households reduced their peak consumption by 10%, with an average reduction of 4.5–6%. A sideways impact was indicated when middle actors from similar communities expressed an interest in conducting such a project in the future. An upstream impact was indicated when a significant actor in the electricity sector expressed an interest in supporting similar future projects.

This paper concentrates on ‘middles’ and ‘middle actors’ in energy systems and introduces a “middle-out” framework for examining and supporting systemic change to a lower carbon society. We propose this “middle-out” approach as a complement to “top-down” and “bottom-up” strategies. Our approach suggests that two essential elements for successful systemic change are actors’ agency and capacity, where ‘agency’ refers to actors’ abilities to make their own free choices, and ‘capacity’ refers to actors’ abilities to perform the choices they made. We argue that due to their position between top and bottom actors and between technology and implementation, middle actors play crucial functions in the transition process. Their abilities are based to their own agency and capacity which they can exercise to influence the agency and/or capacity of other actors. The paper discusses middle actors vis-a-vis ‘intermediaries’ and demonstrates the value of the middle-out approach. Through elaborated examples of three middle actors – congregations, building professionals, and commercial building communities – it shows how middles exert influence upstream (to top actors), downstream (to bottom actors) and sideways (to other middle actors) through mediating, enabling and aggregating both themselves and others. A few weaknesses of this approach are discussed as well.

One of the many barriers to the incorporation of local and community actors in emerging energy governance structures and policy delivery mechanisms is the lack of thorough understanding of how they work in practice, and how best to support and develop effective local energy governance. Taking a meso-level perspective and a network approach to governance, this paper sheds some new light on this issue, by focusing on the relation, channels of communication and interactions between low carbon community groups (LCCGs) and other actors. Based on data gathered from LCCGs in Oxfordshire, UK, via network survey and interviews the research maps the relations in terms of the exchanges of information and financial support, and presents a relation-based structure of local energy governance. Analysis reveals the intensity of energy related information exchanges that is taking place at the county level and highlights the centrality of intermediary organization in facilitating information flow. The analysis also identifies actors that are not very dominant in their amount of exchanges, but fill ‘weak-tie’ functions between otherwise disconnected LCCGs or other actors in the network. As an analytical tool the analysis could be useful for various state and non-state actors that want to better understand and support – financially and otherwise – actors that enable energy related local action.