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November 04, 2010
Brattle Principal Ahmad Faruqui Featured in Economist Special Report on the Expanding Role of Smart Grid in Infrastructure

Dr. Ahmad Faruqui, a principal in Brattle’s San Francisco office, was quoted in The Economist in a November 4, 2010 special report on the expanding role of smart grid technologies in infrastructure systems. In the report, “Making every drop count: Utilities are getting wise to smart meters and grids,” Dr. Faruqui notes that the smart grid serves a major function in power systems with dynamic pricing, which allows the cost of electricity to change in response to customer demand. According to Dr. Faruqui, combining dynamic pricing and demand response could easily yield a reduction in demand twice that of either mechanism used independently. His comments were based on a recent study, "Household response to dynamic pricing of electricity–a survey of 15 experiments," co-authored with Brattle associate Sanem Sergici and published in The Journal of Regulatory Economics. The special report also discusses the use of smart grid technology to optimize the efficiency and cost-effectiveness of utilities in addition to power, highlighting Singapore’s use of traffic flow data to adjust toll prices and traffic lights, and the installation of digital devices to monitor water flow and leaks in London’s water supply system. For more information, please visit The Economist website.