Energy | FSR Global | Other
Dynamic retail electricity tariffs : choices and barriers
21 April 2020
BY: BHAGWAT Pradyumna, HADUSH Samson Yemane
Highlights: • Sixteen international case studies on the implementation of dynamic retail electricity tariffs are reviewed to identify the design and implementation choices that have to be made when introducing such tariffs. • Two primary design choices are identified: 1) the time block length, which means the number of distinct tariff levels; and 2) the price periodicity, which is the time interval between revisions of the tariff. Time-of-use tariffs are widely used and they can be the first step in applying dynamic tariffs before moving to more advanced approaches such as real-time pricing. • Two types of implementation choices are identified: 1) those made by the regulator regarding regulatory interventions to protect vulnerable customers; and 2) those made by consumers regarding whether to opt for a dynamic tariff and the selection of a suitable dynamic tariff option. • The implementation of dynamic retail tariffs depends on the availability of physical and information and communication technology (ICT) infrastructure, the maturity of the power market design and consumer behaviour. • Before implementing dynamic tariffs, it is essential to conduct a careful cost-benefit analysis of the effects on consumers, suppliers and the overall implementation system. Moreover, enabling innovative business models and technologies will help to derive the maximum benefit from the application of dynamic tariffs.
logo cadmus Read it on Cadmus Download in open access

LATEST FSR PUBLICATIONS

Technical Report
Lack of interoperability is increasingly becoming a significant issue in the electricity sector. The need to integrate a growing amount of distributed resources, such as renewable energy sources and electric [...]
Technical report
The energy transition calls for a rapid expansion of electricity grids at both transmission and distribution levels. Technological progress and digitalisation offer new solutions to system needs that can increase [...]
Technical report
The interaction of “Contracts”, “Markets” and “Law and Regulation” have informed the economic analysis of market economies for over 40 years. One of the main lessons learnt is that (contracts), [...]
Other
Rail transport and inland waterways are crucial to achieve the objectives outlined in the Green Deal agenda. These aims include a 55% reduction in greenhouse gases by 2030 and attaining [...]
Article
Urban mobility plays a key role for the promotion of the socio-economic development of a country. Particularly, MaaS platforms are important for those daily journeys made by travellers that must [...]
Article
The scaling up of renewable gases is now being presented as a critical and effective component of the EU's long-term decarbonization strategy. Yet, the support schemes implemented for biogas and [...]

Join our community

To meet, discuss and learn in the channel that suits you best.

scroll

top