{"title":"Profile contracts for electricity retail customers","authors":"Christian Winzer , Héctor Ramírez-Molina , Lion Hirth , Ingmar Schlecht","doi":"10.1016/j.enpol.2024.114358","DOIUrl":null,"url":null,"abstract":"<div><div>Decarbonization involves a large-scale expansion of low-carbon generators such as wind and solar and the electrification of heating and transport. Both space heating and battery-electric cars have significant embedded flexibility potential. Granular price signals that convey abundance or scarcity of electricity are a precondition for customers or aggregators acting on their behalf to exploit this flexibility. However, unmitigated real-time prices expose customers to electricity price risks. To tackle the dual need of providing flexibility incentives while protecting customers from cost shocks, real-time tariffs with a hedging component can be a solution. In such contracts customers pre-agree an amount of energy and a consumption profile, while hourly deviations are charged at spot prices. In this paper we analyze design options by using a dataset of anonymized smart meter data and show that profile tariffs can bring electricity bill volatility to similarly low levels as fixed tariffs while providing full flexibility incentives from spot prices.</div></div>","PeriodicalId":11672,"journal":{"name":"Energy Policy","volume":null,"pages":null},"PeriodicalIF":9.3000,"publicationDate":"2024-09-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Energy Policy","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0301421524003781","RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
Decarbonization involves a large-scale expansion of low-carbon generators such as wind and solar and the electrification of heating and transport. Both space heating and battery-electric cars have significant embedded flexibility potential. Granular price signals that convey abundance or scarcity of electricity are a precondition for customers or aggregators acting on their behalf to exploit this flexibility. However, unmitigated real-time prices expose customers to electricity price risks. To tackle the dual need of providing flexibility incentives while protecting customers from cost shocks, real-time tariffs with a hedging component can be a solution. In such contracts customers pre-agree an amount of energy and a consumption profile, while hourly deviations are charged at spot prices. In this paper we analyze design options by using a dataset of anonymized smart meter data and show that profile tariffs can bring electricity bill volatility to similarly low levels as fixed tariffs while providing full flexibility incentives from spot prices.
期刊介绍:
Energy policy is the manner in which a given entity (often governmental) has decided to address issues of energy development including energy conversion, distribution and use as well as reduction of greenhouse gas emissions in order to contribute to climate change mitigation. The attributes of energy policy may include legislation, international treaties, incentives to investment, guidelines for energy conservation, taxation and other public policy techniques.
Energy policy is closely related to climate change policy because totalled worldwide the energy sector emits more greenhouse gas than other sectors.