Prices Behind the Meter: efficient economic signals to support decarbonization
The electricity consumer is critical to the success of decarbonization. Yet, the economic signals that consumers receive in many countries are likely to discourage efficient decisions and could slow decarbonization or unnecessarily raise the costs. This Insight emphasizes the importance of encouraging only efficient consumer decisions, in particular with respect to investment and use of distributed energy resources (DER) behind the meter (BTM). It focuses on eliminating existing price distortions in certain liberalized electricity markets in the European Union (EU) and on creating or changing markets to reflect new economic and technological conditions.