Faruqi: Electric vehicles, not smart meters, drove time-of-use rate adoption
Ahmad Faruqi · With Great Power: Why dynamic rates are gaining momentum · May 28, 2024 · at 6:28
Veteran energy economist Ahmad Faruqi discusses the historical evolution of dynamic electricity pricing pilots and what finally motivated consumers to enroll.
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“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 off-peak hours, which typically were in the night time. So I think now, so this is about five to 10 years ago, EVs arrive on the scene, and suddenly there is a customer longing for a lower rate, and the time of use pricing finally came of age, I would say, just about 21 years after the experiment in California.”
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