A seemingly obvious way to make the electricity market better may actually make it worse
Thursday, July 23, 2015 - 05:10
in Mathematics & Economics
Restaurants often have their best specials in the middle of the week as a way to increase business on their slowest days. By evening out the flow of customers, carefully timed sale prices can reduce fluctuations in demand. Logically, researchers have wondered if a similar "adaptive pricing strategy" could be used to reduce daily fluctuations in demand in the electricity market, which has become a growing problem with the increased use of fluctuating energy sources, such as wind and solar.