Which Households Respond to Electricity Peak Pricing Amid High Levels of Electrification?
Link to article:
Authors:
Garnache, Cloé, Øystein Hernæs, Anders Gravir Imenes
Year:
2022
Reference:
Andre skrifter
IZA DP No. 15194
Summary
We examine heterogeneity in Norwegian households’ price responses to critical peak pricing (CPP) on electricity consumption, using a large-scale randomized controlled trial (RCT), high-frequency electricity data, and default enrollment. Increasing the grid transmission charge by 4,067% (corresponding to an increase in the electricity price by 1,242%) leads to a 12.5% reduction in consumption, and virtually eliminates the consumption “peak”. In contrast to prior studies from less electrified countries, the effect is broad-based, and similar across income groups. These findings provide a unique lens into the effectiveness of demand-based policies, and their impact across household groups, in a more electrified future.
JEL:
C93, D12, L94, Q41
Keywords:
critical peak pricing, grid transmission charge, peak demand, household heterogeneity, RCT, default enrollment, electrification
Project:
Oppdragsgiver: Norges forskningsrådOppdragsgivers prosjektnr.: 243626
Frisch prosjekt: 3149 - Security of supply in a green power market - The challenges and opportunities of intermittent power
