Publication

Abstract : Pricing in the residential energy markets, especially through real options models of dynamic pricing, is a significant form of instrumental choice to match the consumers’ energy usage with the availability of supply. This study therefore helps in asserting the effectiveness of dynamic pricing, or the so-called time-of-use pricing, on energy usage trends, mostly during peak hours. The proposed research question is to view the impacts and challenges of dynamic pricing for residential consumers, where the aspects of cost reduction and energy consumption will be analyzed by the factors of price sensitivity. The research incorporates data science and AI approaches to the study and identification of the most suitable, as well as the prevention, of the realistic pricing approach to the enhancement of the adoption of renewable energy sources such as solar and wind energy sources. It also analyzes consumers’ actions, focusing on perceptions and reactions toward the changing price indicators. Hence, dynamic pricing strategies hold more gains Compared to energy management and demand responsiveness which remain a major concern as explained beneath. The rather important constraints are consumer resistance, equity issues, and expensive necessary technology and infrastructure costs. Besides, the research stresses the legal and regulatory impacts, data privacy, and the requirement of an effective regulatory framework. However, the possibilities that dynamic pricing can bring to sustainable energy management, and future energy demand make it one of fundamental interest and continued research.