The study of renewable content in retail electricity portfolios and the effect on consumers’ choices
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This report focuses on the renewable plans in retail electricity markets. The integration of renewable energy into power grid enable renewables to play an increasingly important role in the electricity market. Consumers’ preference toward renewable energy plans and non-renewable energy plans is discussed by using both homogeneous consumer model and heterogeneous consumer model. The result shows that consumers prefer non-renewable energy plans than renewable energy plans. By misleading the consumers, retailers can increase the revenue from selling two plans with different proportion of renewable energy. The default effect during the procession of consumers’ decision making can also increase the retailers’ revenue.