Rewarding Grid-Friendly Behavior: Estimating the Potential Bill Reduction and Load Shifting Benefits of Dynamic Prices

Дата публикации: 13-08-2026 00:00:00

Shifting electric load from times of peak demand can be a key strategy to slow price growth as reducing peak demand avoids the cost of upgrading generation, transmission and distribution infrastructure. Utilities are releasing time-varying prices, such as time of use rates or dynamic prices, to incentivize grid-friendly load shifting. New dynamic price programs provide insight into the true cost of operating electricity grids and the potential economic benefits of load shifting. Program developers and device manufacturers need to understand the economic opportunities in terms of 1) the variation in prices across hours, days, and seasons; 2) the change in utility bills for customers who don’t shift load; and 3) the potential load shifted and economic value of different technologies if manufacturers or aggregators deploy price-responsive controls.
This paper estimates possible impacts of dynamic price adoption and load shifting controls if customers paid the dynamic rate from one...

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