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Pricing and demand flexibility in a system dominated by renewable electricity production

Research project The overall goal of this project is to contribute to the design of efficient pricing of electricity in order to enable a larger share of intermittent renewable production. Such pricing schemes should provide incentives for households to adjust their consumption to the current availability of electricity, thereby enabling an increasing share of renewable energy sources.

The proposed project makes two types of contributions. First, the project will contribute to the academic literature within the area, where increasing focus is on household behavior. Second, all research questions in the project are directly relevant for the current policy discussions on electricity market design, and in particular for the integration of more renewable energy. The project will therefore contribute to the development of an electricity market that is flexible, effective and welfare enhancing.

Head of project

Runar Brännlund
Professor emeritus

Project overview

Project period:

2017-07-01 2020-06-30


The Energy Agency, 3.9 MSEK

Participating departments and units at Umeå University

Umeå School of Business, Economics and Statistics

Research area

Latest update: 2019-08-30