Dynamic Pricing in Electricity: Research Potential in Indonesia

Dynamic pricing is a pricing strategy in which businesses set highly flexible prices for products or services based on current market demands. Dynamic pricing is popular because of its ability to increase revenue for a company. For the scope of Asia, China, Japan and Korea, are include three countries which pioneered the dynamic pricing application in electricity. There are three different programs are well-known in dynamic pricing in electricity which includes Time of Use (TOU), Critical Price Pricing (CPP) and Real Time Pricing (RTP). Other programs is Peak Rebate Time (PRT). Not just increasing the revenue, dynamic pricing can also be collaborated with environmental issues, such as dynamic pricing of electricity based environment. The main objective of environment based dynamic pricing is to reduce CO2 and SO2 emissions from the combustion of fuels such as coal, gas and oil. This paper is a literature review of various journals published by Elsevier from 2009 to 2015 that specifically discussed electricity pricing. Dynamic pricing concept can also be applied in Indonesia. Supply side and demand side management are discussed in this paper are related to the research potential in Indonesia