Residential Peak Demand Charges: A Global Overview

The provided texts offer a comprehensive overview of the global shift towards residential demand charges in electricity billing, moving beyond traditional volumetric (kWh) consumption to include the rate of power usage (kW). They explain how these new tariffs, calculated based on a household's highest peak demand over a billing period, aim to improve grid stability and allocate infrastructure costs more equitably, especially with the rise of electric vehicles (EVs) and renewable energy sources. The sources highlight diverse implementations across Europe (notably Sweden and Norway), North America (particularly the US), and Australia, detailing various calculation methods, consumer reactions (often negative), and the market opportunity for smart energy management solutions that help households reduce these new costs through load shifting and automation. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit frahlg.substack.com

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