The Price Is Right Now: Real-Time Energy Costs
AEE Podcast featuring UMS President Brian Coughlan
In anticipation of AEE’s (Association of Energy Engineers) World Energy Conference, UMS President, Brian Coughlan, and Sol Rosenbaum, mechanical engineering consultant, sat down with AEE to discuss real-time and market-based energy costs.
Coughlan and Rosenbaum’s insight on innovative pricing models, reshaping energy consumption, and grid stability, offer a mix of challenges and opportunities for both consumers and businesses.
Traditional utility rates are generally flat, offering little variability. In contrast, real time pricing rates fluctuate based on actual market conditions, often providing lower prices with occasional spikes during peak demand periods. During this episode, an analogy was made to simplify this concept, “Just as our grandmothers would wait until 10 PM to make long-distance calls to take advantage of lower rates, businesses can shift their energy usage to off-peak hours to save costs.”
Coughlan argues that real time pricing benefits extend far beyond cost savings. Real time pricing can enhance grid stability, sending pricing signals to businesses which incentivizes energy load reduction, essential in preventing blackouts and maintaining grid stability during extreme weather conditions.
Though beneficial, real time pricing has its downsides. Coughlan and Rosenbaum noted that real time pricing requires vigilance and constant engagement for full cost benefit. Nevertheless, savings potential is immense and is worth the extra attention. Possible savings can reach millions of dollars and many consumers don’t know energy savings opportunities even exist.
Looking ahead, both experts anticipate rapid evolution in real time pricing, driven by advancements in metering technology and artificial intelligence’s role in optimizing energy use. Regulation remains crucial for fair implementation, but deregulation could spark innovation and more competitive pricing structures.
This episode delves into the transformative potential of real time and market-based pricing models. Whether you’re an energy professional, a business owner, or simply curious about the future of energy, this podcast is a must-listen.
Click the link below to tune in to this podcast and gain valuable insights on how to leverage these innovative pricing models to save money and contribute to a more stable, efficient energy grid.