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Press Coverage:Simple Economics on “Power Reforms and Daily Life”　from The Nikkei “Keizai Kyoushitsu”

Press Coverage of the Prof. Takanori Ida,

Nikkei’s Simple Economics on “Power Reforms and Daily Life”

was released

 

① 3/31:Concerns regarding the existing power system
→Topics: Cognitive dissonance about nuclear energy dependency and the raise of electricity rate 　etc.

② 4/1: Insufficient liberalization
→Topics: About electricity revolution in the past and future etc.

③ 4/2:Advantages and disadvantages of liberalization
→Topics: Total liberalization of refail in electivity and sharing the cost of universal service , etc.

④ 4/3: Demand adjustment through variable power prices
→Topics: Demand responses based on dynamic electｒicity pricing and the small but highly statistially significant price　at electricity demands, etc.

⑤4/4: The effects of peak demand control
→Topics:Dynamic pricing social experiment suppressing up to 20% of peak usage & charges of households.
The major problem is spreading this to the public, etc.

 

⑥4/7: Taking the stance of users
→Topics:Promotion method of Dynamic pricing, Opt-in;high-effect and low adoption rate,
Opt-out ;Low effect and high adoption rate.It is difficult to implemment in practice even if it desirable to use “opt-out”,The major problem is the switchry cost from “Opt-in” , etc.
⑦4/8:The role of the wholesale market
→Topics: A secure energy source of new market power company, Expect for competition in power sector ravitalization of the electric power exchage.
The major problem is the lack of market depth , etc.

 

⑧4/9：The need for grid neutrality
→Topics:policy for “bottle-neck” equipements.
The deregulation policy to promote competition in telecommunication industry,
by having relatiely lower fature cost also about the fat that
entrence cost will be affected by high connection fee,
while current management in electricity companies will be affected by low by low connection fee , etc.

 

⑨4/10: Stable supply through market leverage
→Topics: the meaning of Capacity Market where future power generating ability is traded.
Is it possible to have a market mechanism that maintains the investment to power generating capacity with long-term risk?
The work by young economists on the topics of market design is highly expected.

 

⑩4/11 Parties responsible for production and consumption.[end]
→Topics: toward the spread of automatic demand response
Automation contributes to the adjustment of real time demand response,
and makes the balance between demand and supply easier.
With the adoption of electricity storage technology, households can also become prosumers.
This has to be implemented systematically.