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Surge pricing seems like an effective way at getting end users to reduce their usage when needed. If you have a fixed pricing, even in times of extreme demand,
by Gigachad 3y ago
Surge pricing seems like an effective way at getting end users to reduce their usage when needed.
If you have a fixed pricing, even in times of extreme demand, I’m still going to crank my aircon to the max, run my gaming PC, start the washing machine, etc. I have no incentive to change my usage based on network load.
Meanwhile if pricing is dynamic, I’ll time my appliances to run at peak renewables times when power is plentiful, I’ll chose to reduce my heating and cooling when it’s not.
The alternatives are rolling blackouts, and those iot thermostats that block you from using your air con when the power companies say.
- hnben 3y agoI think dynamic prices in itself are a good thing for the reasons you mentioned. On the other hand: if the end-user prices rely solely on market-pricing, than utility-companies don't have any incentives to provide a stable energy generation (e.g. via utility-scale storage, or peaker plants). I think a good solution would be involve some dynamic pricing together with a capped upper and lower bounds.