Brattle Economists Discuss the Importance of Customer Flexibility in a Future of Renewable Energy

Brattle Principal Ahmad Faruqui and Senior Associate Mariko Geronimo Aydin have co-authored an article published in the American Public Power Association’s “Leadership in Rate Design” supplement to the May/June issue of the Public Power Magazine.

The article, “Expanding Customers Choices in a Renewable Energy Future,” discusses the need to building a resource portfolio and system that is able to take advantage of clean power when it becomes available as more cities and starts are committing to reaching 100% renewable energy in the coming years. One issue that must be addressed is that, at any given moment, energy supply from renewables may be lower than energy consumption. This requires customers to be more flexible and shift some of their energy consumption to periods of time when energy supply from renewables is high.

Moving forward, utilities must continuously seek to understand shifting consumer needs and preferences in order to offer meaningful rate options. As more rate options are developed and made available, the effectiveness of the options must be tested to determine if new rates should be offered and consumers must be educated to ensure that they understand the array of rate options and are choosing a rate that makes the most sense for them.

The full article can be found starting on the American Public Power Association website beginning on page 11.