Is Real-time Pricing Smart for Consumers?

Anette Boom*, Sebastian Schwenen

*Corresponding author af dette arbejde

Publikation: KonferencebidragPaperForskningpeer review

Abstrakt

We examine the effects of real-time pricing on welfare and consumer surplus in
electricity markets. We model consumers on real-time pricing who purchase electricity on the wholesale market. A second group of consumers contracts with retailers and pays time-invariant retail prices. Electricity generating firms compete in supply functions.
Increasing the number of consumers on real-time pricing increases welfare and consumer surplus of both types of consumers. Yet, risk-averse consumers on traditional timeinvariant retail prices are always better off. Collectively, our results point to a public good nature of demand response in power markets when consumers are risk-averse.
OriginalsprogEngelsk
Publikationsdato2021
Antal sider31
StatusUdgivet - 2021
Begivenhed9th Mannheim Conference on Energy and the Environment - Online, WWW
Varighed: 20 maj 202121 maj 2021
Konferencens nummer: 9

Konference

Konference9th Mannheim Conference on Energy and the Environment
Nummer9
LokationOnline
Land/OmrådeWWW
Periode20/05/202121/05/2021

Emneord

  • Electricity
  • Real-time pricing
  • Market power
  • Efficiency

Citationsformater