Household Electricity Pricing: Dynamic Pricing under Different Taxation Schemes | Advanced Science News

The developments in electricity production from renewable resources, like wind and solar power, requires an increasingly flexible power system. One option attracting considerable attention for several decades is to make use of idle flexibility from electricity consumers. The continuous roll-out of smart meters enables more detailed billing, and consumers could switch to dynamic pricing schemes that offer economic gains if consumption is adjusted in response to prices. It remains an open question, though, whether such options would be sufficiently attractive from the consumer’s point of view.

On liberalized electricity retail markets dynamic pricing must compete with other types of retail offers. The effectiveness of dynamic schemes depends largely on individual decisions taken by households. Recently, Danish researchers set out to explore the incentive for household consumers to choose dynamic pricing. Denmark is committed politically in two ways that make it particularly interesting in this regard: first, a commitment to renewable energy formulated as a long-term vision of becoming independent from fossil fuels; and second, a commitment to liberalized energy sectors with a notably progressive approach to market-based operations.

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Household Electricity Pricing: Dynamic Pricing under Different Taxation Schemes – Advanced Science News.