The Price Is Right Now: Real-Time Energy Costs

In our latest podcast episode, we dive deep into the world of real time and market-based pricing with industry experts Brian Coughlan and Sol Rosenbaum. These pricing models are rapidly changing the landscape of energy consumption and grid stability, offering both challenges and opportunities for consumers and businesses alike.

Brian Coughlan, an electrical engineer with over 42 years of experience, and Sol Rosenbaum, a mechanical engineer with a passion for energy efficiency, share their insights on how real time pricing differs from traditional utility rates. Traditional utility rates are typically flat, offering little to no variability in pricing. In contrast, real time pricing rates fluctuate based on actual market conditions, often providing lower prices but with occasional spikes during peak demand periods.

One of the most relatable comparisons made during the episode resembles when real time pricing happened for long-distance phone rates. 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. This analogy helps demystify the concept for those unfamiliar with energy pricing models.

The benefits of real time pricing extend beyond just cost savings. As Sol points out, it gets people thinking about energy efficiency and how they can optimize their usage. Brian adds that real time pricing can significantly enhance grid stability. For example, during extreme weather conditions, sending a pricing signal to businesses can incentivize them to reduce their load, thereby preventing blackouts and maintaining grid stability.

However, the adoption of real time pricing is not without its challenges. Both experts agree that it’s not a “set it and forget it” model. Consumers and businesses need to be vigilant and responsive to pricing signals to truly benefit. This requires a level of engagement and planning that can be a hurdle for some.

Despite these challenges, the potential for savings is immense. Brian shares success stories of clients who have saved millions of dollars by making slight adjustments to their operations. Sol emphasizes that the key to wider adoption lies in education and awareness. Many consumers simply don’t know these opportunities exist.

Looking to the future, both experts see real time pricing evolving rapidly, thanks in part to advancements in metering technology and the potential for artificial intelligence to further optimize energy usage. While regulation plays a crucial role in ensuring these models are implemented fairly, the competition brought about by deregulation can drive innovation and better pricing structures.

In summary, this episode offers a comprehensive look at the transformative potential of real time and market-based pricing. Whether you’re an energy professional, a business owner, or just someone interested in the future of energy, this episode is a must-listen.

Tune in now to gain valuable insights and learn how you can take advantage of these innovative pricing models to save money and contribute to a more stable and efficient energy grid.

Podcast: Play in new window | Download