California is switching to Time-of-Day electricity pricingenergy-cleantech-digitalization
Energy market is still regulated in California. Production of renewable energy is increasing while energy consumption patterns remain the same. Utilities are facing a situation where cost of producing energy can be high especially when consumption is high. They are now starting to change pricing to reflect this. This pricing change will eventually be applied to business and residential users. For residential users the price can fluctuate between 10c/kWh and 43c/kWh depending on the time of day. First group of residential customers will start using this pricing model in Spring 2018.
This change creates interesting opportunities for companies that can
1) Save energy
2) Report and adjust time of consumption in appliances using electricity
3) Local storage solutions
4) Local production of electricity
5) Demand Response and Demand management