Electricity prices regulated by the government are commonplace in Europe, chiefly out of concern for vulnerable consumers. But they also undermine the adoption of innovative demand-response technologies, which are key to integrate higher shares of renewables and electric cars.
Real-time prices are considered essential to unlocking the next generation of digital demand-response technologies, which allow consumers to react to price signals and use electricity when it’s cheapest – for example during office hours or at night.
That was the logic behind the European Commission’s proposed reform of electricity market rules, which promised to put consumers in the driving seat of a revolution in the way power is produced, traded and consumed across Europe. Continue reading “Regulated tariffs under fire as clean energy gains momentum”