Background: In recent years, demand response (DR) has gained increased attention from utilities, regulators, and market aggregators to meet the growing demands of electricity. The key aspect of a successful DR program is the effective processing of data and information to gain critical insights. This study aims to identify information processing needs and capacity that interact to improve energy DR effectiveness. To this end, organizational information processing theory (OIPT) is employed to understand the role of Information Systems (IS) resources in achieving desired DR program performance. This study also investigates how information processing for DR systems differ between developing (India) and developed (Australia) countries.
Method: This work adopts a case study methodology to propose a theoretical framework using OIPT for information processing in DR systems. The study further employs a comparative case data analyses between Australian and Indian DR initiatives.
Results: Our cross case analysis identifies variables of value creation in designing DR programs - pricing structure for demand side participation, renewable integration at supply side, reforms in the regulatory instruments, and emergent technology. This research posits that the degree of information processing capacity mediates the influence of information processing needs on energy DR effectiveness. Further, we develop five propositions on the interaction between task based information processing needs and capacity, and their influence on DR effectiveness.
Conclusions: The study generates insights on the role of IS resources that can help stakeholders in the electricity value chain to take informed and intelligent decisions for improved performance of DR programs
