Dynamic Pricing of Electricity and its Discontents
17 Pages Posted: 15 Aug 2011
Date Written: August 3, 2011
Abstract
Dynamic pricing incentivizes electricity customers to lower their usage during peak times, especially during the top 100 “critical” hours of the year which may account for between eight and eighteen percent of annual peak demand. Lowering peak demand in those hours means avoiding capacity and energy costs associated with the installation and running of combustion turbines in the long run and lowering wholesale market prices in the short run.
Keywords: Dynamic Pricing
Suggested Citation: Suggested Citation
Faruqui, Ahmad and Palmer, Jenny, Dynamic Pricing of Electricity and its Discontents (August 3, 2011). Available at SSRN: https://ssrn.com/abstract=1908963 or http://dx.doi.org/10.2139/ssrn.1908963
Do you have negative results from your research you’d like to share?
Recommended Papers
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.