{"id":18524,"date":"2018-11-15T14:48:59","date_gmt":"2018-11-15T19:48:59","guid":{"rendered":"http:\/\/blogs.edf.org\/energyexchange\/?p=18524"},"modified":"2019-01-22T10:23:16","modified_gmt":"2019-01-22T15:23:16","slug":"with-dynamic-electricity-pricing-more-data-can-lead-to-more-savings","status":"publish","type":"post","link":"https:\/\/blogs.edf.org\/energyexchange\/2018\/11\/15\/with-dynamic-electricity-pricing-more-data-can-lead-to-more-savings\/","title":{"rendered":"With dynamic electricity pricing, more data can lead to more savings"},"content":{"rendered":"

\"\"<\/a>By Kim Sha and Ben Liu, clean energy interns<\/em><\/p>\n

Illinois\u2019 largest utility, ComEd, is almost finished deploying advanced metering infrastructure<\/a> to its customers. In fact, there are now more than 3.8 million installed smart meters in Illinois, feeding anonymized energy-use data \u2013 recorded in half-hourly kilowatt-hours \u2013 back from the grid.<\/p>\n

How to make use of this unwieldy flood of data and enhance the efficiency of the grid? Our new paper, Modelling Marginal System Costs for the Commonwealth Edison Distribution Network<\/em><\/a>, provides a framework for regulators, utilities and other researchers to begin to examine the insights provided by smart meter data, highlighting opportunities to save money for customers and utilities alike. Specifically, our study shows that under real-time electricity pricing, ComEd customers can save money not only by changing how much electricity they use, but by adjusting when they use it.<\/p>\n

<\/p>\n

Building on existing research<\/strong><\/p>\n

Real-time pricing charges people different electricity rates depending on the time of day, and it has been shown before that ComEd customers save money by switching to real-time pricing.<\/p>\n

Last year, Environmental Defense Fund (EDF) and Illinois’ utility watchdog, Citizens Utility Board (CUB), came together to conduct one of the first analyses of anonymized energy-use data provided by ComEd. This early foray revealed that real-time electricity pricing would have helped nearly all ComEd customers save money<\/a> in 2016, based on a study of over 300,000 homes.<\/p>\n

Our new paper takes that analysis a step further.<\/p>\nWith dynamic electricity pricing, more data can lead to more savings <\/a><\/span>Share on X<\/a><\/span>\n

New results<\/strong><\/p>\n

For the purposes of this study, we developed a custom real-time pricing scheme to reflect how electricity should have been priced if the utility had perfect knowledge of historical system costs \u2013 i.e. looking back on actual data rather than relying on forecasts of energy demand. We then applied this pricing scheme, which is very close to ComEd’s Residential Real-Time Pricing<\/a>, to \u2018typical\u2019 customers\u2019 energy-use patterns.<\/p>\n

The giant pool of customer data was divided into several layers by year, season and day of the week. These subsets were further characterized using a statistical clustering algorithm<\/a>.<\/p>\n

The study found that, given the same energy-use behavior, most residential customers on flat-rate billing would benefit \u2013 or save money \u2013 from moving to a real-time pricing scheme. Single households that switch to a real-time pricing scheme can save up to 30 percent on their electricity bills in comparison to flat-rate billing.<\/p>\n

Although consuming less energy undoubtedly saves money, doing so when real-time prices are cheaper is also a large determinant of electricity bills. This doesn\u2019t necessarily mean you have to constantly check and adjust how much electricity you\u2019re using. Although \u2018flattening\u2019 energy use \u2013 i.e. trying to make power demand consistent throughout the day \u2013 has traditionally been seen as an important factor in reducing costs, our results show that the same could be achieved just by shifting the time your \u2018peak\u2019 usage occurs.<\/p>\n

For example, instead of running your dishwasher around 7 pm when many people are home, awake and using appliances, you could save more money by running it a few hours later \u2013 during \u2018off-peak\u2019 hours. The potential for savings is most observable in the summer months because of high AC demands during the early evening hours.<\/p>\n

Moreover, shifting to a real-time pricing scheme will reduce overall system costs for the utility by optimizing the efficiency of the distribution network. A more efficient network means less waste, which is cheaper for everyone.<\/p>\n

Tip of the iceberg<\/strong><\/p>\n

The data-analysis collaboration between EDF and CUB is yielding more precise findings than ever before. We hope ours will not be a singular, isolated effort. Utilities must educate customers. Policy makers should encourage sustainable living. Researchers must continue to tackle tomorrow\u2019s energy challenges.<\/p>\n

Dynamic electricity pricing is a step in the right direction, but how can we prepare the electricity grid for a future powered by renewable energy, or a future replete with electric vehicles? The continuous characterization of our power network is necessary for the realization of a cleaner and more efficient grid infrastructure. Energy data will be key to solving the puzzle \u2013 and we\u2019re just getting started.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Kim Sha and Ben Liu, clean energy interns Illinois\u2019 largest utility, ComEd, is almost finished deploying advanced metering infrastructure to its customers. In fact, there are now more than 3.8 million installed smart meters in Illinois, feeding anonymized energy-use data \u2013 recorded in half-hourly kilowatt-hours \u2013 back from the grid. How to make use …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[40302,72897],"tags":[],"coauthors":[],"class_list":["post-18524","post","type-post","status-publish","format-standard","hentry","category-illinois","category-time-of-use"],"acf":[],"yoast_head":"\nWith dynamic electricity pricing, more data can lead to more savings - Energy Exchange<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/blogs.edf.org\/energyexchange\/2018\/11\/15\/with-dynamic-electricity-pricing-more-data-can-lead-to-more-savings\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"With dynamic electricity pricing, more data can lead to more savings - Energy Exchange\" \/>\n<meta property=\"og:description\" content=\"By Kim Sha and Ben Liu, clean energy interns Illinois\u2019 largest utility, ComEd, is almost finished deploying advanced metering infrastructure to its customers. 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