Evaluating the impact of dynamic pricing.
Are residential time-of-use prices only effective for middle class households, or do low-income customers benefit too—as authors Lisa Wood and Ahmad Faruqui asserted in their October 2010 article? Data from pilot programs show that low-income customers exhibit a reduced ability to benefit from dynamic pricing. Demand response programs should accommodate the realities of low-income customers’ consumption patterns.
Technology creates new opportunities for demand- side management
By Kristin Brief and Brad Davids
Customer value is a key factor in any smart grid business case. But not all customers are created equal. In particular, commercial and industrial (C&I) customers have greatly different needs, considerations and sensitivities, compared to residential customers. As a result, demand response and efficiency programs won’t produce the same results across customer classes. Getting the most from the C&I market will depend on integrating smart grid with smart building technologies.
Correcting misconceptions about load-management programs.
Lisa Wood and Ahmad Faruqui
Do low-income customers respond to dynamic rates? The answer is yes, and in fact such customers can benefit from dynamic pricing without shifting loads”contrary to conventional wisdom. A study co-authored by the Edison Foundation’s Institute for Electric Efficiency and the Brattle Group shows that restricting access to dynamic rates might actually be harmful to most low-income customers.
The changing architecture of demand response in America.
Ahmad Faruqui, Ryan Hledik and Sanem Sergici
Pilot projects are demonstrating the potential of smart metering and smart rates to make the most of supply and demand resources. But as empirical studies show, not all pricing designs are equally suited to every region.
What do customers get from AMI investments?
Utility commissions are responding to their constituents by dramatically increasing emphasis on funding for energy-efficiency and demand-response programs. They believe—and expect—advanced metering infrastructure (AMI) will contribute substantially to both areas.
Everyone is in favor of more demand response, but little gets delivered when system operators need it the most.
Scott Neumann, Fereidoon Sioshansi, Ali Vojdani, and Gaymond Yee
Despite overwhelming theoretical and empirical evidence, we aren’t seeing more DR when it is needed most—during emergency periods. The reasons boil down to two obstacles, both of which must be addressed before widespread DR implementation can move forward.
The region’s retail and wholesale electricity markets should be linked via dynamic pricing.
By Henry Yoshimura, Amr Ibrahim, And Robert Laurita
The time has come to start the transition from the current economic demand-response programs to demand response that arises naturally through market-based retail pricing.
Over the past few decades, utility sponsored conservation and load-management programs have helped thousands of customers better manage their energy costs. While these programs have helped lower overall electricity use, they generally have not provided an economic incentive for customers to reduce their consumption at specific times in response to wholesale electricity prices.