A Study on Responsible, Risk Integrated Adoption of Smart Grid Technology by Residential Consumers - Indian Context

Abstract

The evolution of Smart Grid Technology (SGT) is expected to show a solution for the escalating complexity of electricity grid, steadily increasing quest for electricity, demand for enhanced reliability and increased efficiency of grid as well as an answer for issues concerning the environment and sustainability of energy supply. Being an innovation of socio-technical nature, electricity consumers are to get integrated with SGT for adoption to derive the envisaged full potential. A comprehensive research model is developed on the framework of Technology Acceptance Model (TAM) by extending it with other relevant factors in addition to the TAM variables, Perceived Ease of Use and Perceived Usefulness. Accordingly, influential factors, Personal Norm representing the societal benefits, Perceived Risk in Use of SGT, Regulation/Policy on SGT and Vulnerability or socio-economic environment of residential electricity consumers are included to frame a more meaningful model for research to understand the technology adoption. The study based on the developed research model and the analysis of data gives better understanding of the influence of various factors. The results indicated that Perceived Ease of Use, derived from Perceived Understanding and Compatibility of the Technology is an influential factor in the adoption of SGT. Similarly Perceived Usefulness, based on the perception of the consumer that SGT can reduce electricity rates and contribute to power supply reliability, significantly influences adoption. Also, the results show that Personal Norm is an emerging factor, influencing adoption of SGT wherein the benefits are more societal than private. Interestingly, it couldn‟t identify Perceived Risk in Use as a deterring factor in SGT adoption as indicated by the results of the SEM analysis as insignificant, possibly due to the consumer‟s familiarization with similar technologies nowadays. Further, the SEM analysis results vi of the study do not support the need for further Regulatory/Policy provisions as the factor also turned insignificant statistically. Similarly, the socio-economic status of the consumer represented by the variable, Vulnerability is not identified in this study as a significant hindering factor in adoption of SGT as indicated by the results of SEM analysis. The outcome of the study discloses that the technology managers can bank much on Ease of Use and Usefulness of the Technology to make consumers adopt SGT. Similarly, the factor, Personal Norm which points at societal benefits, such as energy sustainability and environmental concerns is of significance in implementation of SGT, The comprehensive research model developed can be extended to studies on contemporary technology adoption scenarios such as solar power generation at households, adoption of electric vehicles, etc. wherein the societal benefits outweigh private gains.