Growth will be particularly robust in North America throughout the forecast period
A new report from Navigant Research explores the market drivers and barriers for global dynamic pricing in the electricity industry, with forecasts for number of customers segmented by pricing type, sector, and region, through 2025.
Dynamic pricing, a concept in which the value of a product varies based on time or other factors, can be found in many aspects of society, including airline fares, sporting event tickets, and road tolls. In the electricity industry, the concept allows for rates that are indexed to real-time wholesale energy prices instead of a flat rate across all hours and variables. Click to tweet: According to a new report from @NavigantRSRCH, the number of customers on dynamic pricing rates globally is expected to rise from approximately 3.4 million in 2016 to 113.3 million in 2025.
“The concept of dynamic pricing for mass market electricity customers is fairly recent aside from time-of-use rates, which offer set prices for set on- and off-peak periods that do not vary during the tariff period,” says Brett Feldman, principal research analyst with Navigant Research. “However, with the proliferation of advanced meters that can record and communicate interval data, more dynamic types of pricing can be applied down to the residential level, encouraging growth in dynamic pricing programs.”
Growth in the number of customers using dynamic pricing for electricity is expected to be robust during the next decade, particularly in North America, according to the report. This trend is expected to hold true throughout the forecast, even as other regions eventually start to implement dynamic pricing programs.
This report, Dynamic Pricing, examines the market drivers and barriers for the global dynamic pricing market. The report focuses on four major pricing types: real-time pricing (RTP), critical peak pricing (CPP), peak time rebates (PTR), and variable peak pricing (VPP). Global market forecasts for number of customers, broken out by pricing type, sector (residential and C&I), and region, extend through 2025. The report also examines case studies of dynamic pricing from around the world, summarizing their objectives and impacts, as well as the lessons learned. An Executive Summary of the report is available for free download on the Navigant Research website.
Contact: Lindsay Lorenz
* The information contained in this press release concerning the report, Dynamic Pricing, is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.