Dynamic Pricing of Electricity and its Discontents

17 Pages Posted: 15 Aug 2011

See all articles by Ahmad Faruqui

Ahmad Faruqui

The Brattle Group

Jenny Palmer

affiliation not provided to SSRN

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

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

Ahmad Faruqui (Contact Author)

The Brattle Group ( email )

Suite 2800
201 Mission Street
San Francisco, CA 94105
United States

Jenny Palmer

affiliation not provided to SSRN ( email )

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