Quantifying the Reduction in Emissions of Oxides of Nitrogen due to Residential Dynamic Pricing

Residential consumers exposed to dynamic pricing, or prices that vary with the market value of electricity, have been shown to consistently shift electricity demand during high price periods. Our research hypothesizes that oxides of nitrogen, (NOx), will also be reduced with the implementation of dynamic pricing. To test this we modeled the New York State grid under baseline and dynamic pricing scenarios using GE MAPS, a complex production simulation model of the New York and surrounding power control areas. The dynamic pricing scenario was created using a top-down model of how dynamic pricing affects hourly loads. Results show that in New York City NOx emissions are reduced by approximately 8%, or 171 tonnes, over the ozone season. Reductions in NOx emissions are attributable to an increased utilization of less polluting generators and decreased utilization of peaking generators. Other cities show different trends due to different generation mixes and transmission constraints.