Koji Shimada

An empirical study of real-time feedback and dynamic pricing effects on electric power consumption: Field Experiment on a remote Island in Japan

The management of electric power demand is a key element in the creation of smart-energy communities. We are engaged in a field experiment with the participation of 51 households on Nushima Island, one of the remote islands of Japan, to study the effects of real-time feedback and dynamic pricing on electric power consumption using smart meters and tablet PCs. From the results of panel data analysis, we have found that these measures achieve an estimated saving of 22 percent in electric power consumption when the tablet PCs are accessed three times per day.

Market Design for Renewable Energy Dissemination.

Renewable energy has less environmental impact and little marginal cost. Due to this nature, it is desirable to disseminate it from the viewpoint of economic efficiency. On the other hand, because of the uncertainty of the supply of renewable energy and the specialty of electricity as goods, it is difficult to achieve efficient allocation even if the normal competitive market is applied as it is. Problems such as how to secure power capacity and how to deal with the risk of power outage are concerned in European countries that have already adopted measures to cope with these problems in practice. These problems suggest that a new market design is required for the power market.