How should price-responsive electricity tariffs evolve? An analysis of the German net demand case

Abstract

This research proves, using daily data, that net demand has a higher impact on the German wholesale market price than the traditional concept of electricity demand. The aim of this paper is to develop a broader framework for the design of new tariffs for German consumers, taking net demand as its primary reference. To accomplish this, a classification of net demand by level was developed. The findings of this research provide new insights about the occurrence of net valley and net peak periods, something which is useful for designing tariffs, affecting how the price should be differentiated during the day.