Dynamic Pricing Report PublishedWednesday, April 6, 2016 Real-Time Pricing, Critical Peak Pricing, Peak Time Rebates, and Variable Peak Pricing: Global Market Analysis and ForecastsDynamic pricing for products exists in many aspects of society, including airline tickets, theater and sporting event tickets, subway fares, and road tolls. The basic concept is that the value of a product varies based on time and other factors. Thus, being able to charge prices that better reflect that value is more economically efficient than simply charging an average flat price across all hours and variables. In the electricity industry, the concept of dynamic pricing for mass-market customers is fairly recent, aside from time-of-use rates that offer set prices for fixed on- and off-peak periods. Rates that are indexed to real-time wholesale energy prices have been around for large commercial and industrial (C&I) customers since deregulation. With the proliferation of advanced meters that can record usage at small intervals, more dynamic types of pricing can be applied down to the residential level. The largest region of adoption is expected to be North America, a trend that will likely hold true throughout the forecast—even though other regions will eventually start to implement dynamic pricing programs. According to Navigant Research, the number of customers on dynamic pricing rates globally is expected to rise from approximately 3.4 million customers in 2016 to 113.3 million in 2025. Table of Contents
Key Market Forecasts
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