Energy economist Ahmad Faruqi discusses how distributed energy resources and younger consumer preferences are forcing electric utilities to modernize rate designs.
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“And if they don't change those utilities that don't change them, they'll go bankrupt.”
quote is from the automated transcript, cleaned for reading:
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More from Ahmad Faruqi
Insight
Faruqi: Time-of-use rates are a poor fit for heat pumps
“A heat pump, which is both an air conditioner in the summer and a heat source in the winter, will be running precisely when there is a peak situation in the summer or a peak situation in the winter. Actually, it will create a peak demand in the winter that cur…”
Ahmad FaruqiMay 28, 2024▶ 7:34With Great Power: Why dynamic rates are gaining momentum
Insight
Faruqi: Utilities do not need pilots given 400 existing global trials
“Let's try to actually move to actual implementation, and my advice is you don't really need to do a pilot because we already have 400 pilots across the globe.”
Ahmad FaruqiMay 28, 2024▶ 14:28With Great Power: Why dynamic rates are gaining momentum
AssertionNot checkable as stated
Faruqi: Oklahoma Gas and Electric led California in dynamic pricing a decade ago
“Oklahoma Gas and Electric, actually about 10 years ago I discovered That Oklahoma was ahead of California when it came to dynamic pricing”
Ahmad FaruqiMay 28, 2024▶ 19:17With Great Power: Why dynamic rates are gaining momentum
Insight
Faruqi: Electric vehicles, not smart meters, drove time-of-use rate adoption
“The change that came was through a technology. Not digital meters, but through electric cars. Electric cars, or EVs as they're called, were the defining moment. Customers finally realized That they can lower their charging cost if they just charge during the o…”
Ahmad FaruqiMay 28, 2024▶ 6:28With Great Power: Why dynamic rates are gaining momentum
Insight
Faruqi: Net grid load impact of DERs remains uncertain
“Some of them will raise load growth, EVs and heat pumps certainly being those two. But then there are other DERs which will lower load growth, like energy efficiency, demand response, and certainly solar. So what will be the net effect of those is anybody's gu…”
Ahmad FaruqiMay 28, 2024▶ 9:18With Great Power: Why dynamic rates are gaining momentum
PredictionHeld up
Faruqi: Solar generation will push electricity peak hours into late night
“The peak will keep on going into the later evening, early nighttime hours, and the off peak will be in the middle of the day when the sun is shining and you have a lot of solar generation, both supply side and customer side.”
Ahmad FaruqiMay 28, 2024▶ 11:08With Great Power: Why dynamic rates are gaining momentum
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