The issue is that most consumers don't like unpredictable prices. You can make a crude approximation by having 2-3 fixed rates for different times of day, but that leaves a lot of potential on the table
The issue is that most consumers don't like unpredictable prices. You can make a crude approximation by having 2-3 fixed rates for different times of day, but that leaves a lot of potential on the table
Plus large parts of Europe are currently transitioning to more granular 15-minute pricing: https://www.nordpoolgroup.com/en/trading/transition-to-15-mi...
You can still get fixed tariff electricity contracts but you'll end up paying a bit extra in return for greater predictability…
The key is to not take this away; make it so that those who want predictability can get it (but they end pay more for the privilege) but those who want to try to "game the system" can (and incidentally help with the overproduction problem).
Done well, things like Powerwalls, thermal mass storage, etc could absorb quite a bit of load during peak production times, reducing load at inopportune times.
And in the meantime it would be very unpopular for people who can't just afford to renew their otherwise fully functional appliances.
I agree on the popularity, but you'd absolutely see an effect even without anyone buying new appliances
The aim is net zero by 2050, lifespan of a fridge-freezer is about 10 years. Even assuming designing a system and putting it in place took 5 years, that's still enough time to have most appliances on it by 2040.
Given the current energy prices, it probably even makes sense to replace appliances sooner than their normal lifetime. My fridge-freezer is only 5 years old, but if it broke today and cost more than ~£150 to repair, I'd end up saving money by replacing it.
General population doesn't understand that fixed pricing includes an extra cost which is the risk that the electricity provider has to account for. That risk has a calculable price, which is passed down to the consumers. But because it's baked in the flat rate, nobody complains.
Smart/dynamic pricing actually benefits the consumer.
No it doesn't. The customer has low risk appetite and would rather pay a premium for predictability.
It's like how there's a substantial portion of the population that counts the best commute time ever as their commute time, and are perpetually late. "How can it take 30 minutes to get to work, one time it was only 15!" - ignoring the reality of traffic, subway delays, etc.