Environmental impact reduction of residential end-users: an innovative methodology based on the power grid CO2 emission factor

The energy framework is currently undergoing a significant transformation, primarily driven by the rapid expansion of renewable energy sources for electricity generation, as part of the broader energy transition process. Consequently, the CO2 emission factor of the power grid decreases during years and presents an appreciable variation on an hourly basis. In this context, the mitigation of the environmental impact linked to end-users electricity consumption can also be achieved by adjusting load profiles, with residential end-users having a pivotal role. This study first examines the hourly variation in both residential load profiles and the power grid CO2 emission factor, considering different seasons and types of days (weekdays, Saturdays and non-working days). Then, an innovative approach for optimizing load profiles to minimize associated CO2 emissions is presented. The outcomes of the application to the Italy case lead to shifting energy demand to central day hours, reducing evening consumption. Considering the same daily energy demand, each end-users can avoid up to 18.93 kgCO2/year. To incentivize users to shift their consumptions for direct emissions reduction, economic compensation strategies are proposed, including new electricity tariff, remunerative certificates for avoided emissions, and tax reductions on electricity bills. The latter strategy offers a potential reduction in energy costs from 9.23% to 11.27%, depending on the tariff model, when compared to the baseline scenario with the optimized consumption profile. A sensitivity analysis on carbon certificates value entails potential economic savings ranging from 5% to 20% for values among 1.74 and 7.08 €/kgCO2 avoided, highlighting lower values if combined with tax reduction.