Review of dynamic pricing programs in the U.S. and Europe: Status quo and policy recommendations

Zheng Hu, Jin-ho Kim, Jianhui Wang and John Byrne

Renewable and Sustainable Energy Reviews, 2015, vol. 42, issue C, 743-751

Abstract: With the development of demand response (DR) technologies and increasing electricity demand, dynamic pricing has been a popular topic in many countries. This paper evaluates various dynamic pricing programs in the U.S. and Europe, and provides insights into various aspects including risks and rewards, enabling technologies, lower-income groups and customer types surrounding programs such as Time-of-Use (TOU), Critical Peak Pricing (CPP), Peak Time Rebates (PTR) and Real Time Pricing (RTP). We conclude this paper with three main findings: (1) policy coordination in promoting dynamic pricing programs between federal and state regulatory agencies is very critical; (2) customer engagement is very important and can be enhanced via more accessible educational programs and policy adjustments; and (3) more investment in related R&D is required to construct a commonly accepted methodology for measuring the effectiveness of dynamic pricing programs.

Keywords: Dynamic pricing; Demand response; Electricity tariffs (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (36)

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DOI: 10.1016/j.rser.2014.10.078

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