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The Power of Five Percent - How Dynamic Pricing Can Save $35 Billion in Electricity Costs
Ahmad Faruqui, Ryan Hledik, Sam Newell and Johannes Pfeifenberger

This paper discusses the potential impact of demand response with dynamic pricing and how by using best available technologies, the customers could potentially lower the national peak demand. Against this backdrop, the authors also estimate the market potential of demand response based on realistically achievable penetration rates. Specifically, the following topics are discussed in the paper:
- How demand response and dynamic pricing can help deal with the challenge?
- How much demand response can be achieved through dynamic pricing?
- What is the value of a five percent demand response?
- The cost-benefit ratio of investing in dynamic pricing

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