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But presumably marginal electricity is priced at 0 because there aren't many buyers on the market. As more people figure out how to use bursts of electricity,
by obblekk 9y ago
But presumably marginal electricity is priced at 0 because there aren't many buyers on the market.
As more people figure out how to use bursts of electricity, they'll become buyers and prices may rise.
- neltnerb 9y agoThey are frequently built using feed-in tariffs, which guarantees that electricity will have a positive fixed price. Otherwise they're basically impossible to finance because as you say the generation marginal cost is zero so they'd just have to accept any price otherwise and lose money for the investors. https://en.wikipedia.org/wiki/Feed-in_tariff https://en.wikipedia.org/wiki/Feed-in_tariff
- xbmcuser 9y agoWhich will result in solar and wind having a faster Roi and so even larger investments. Despite the faster adoption for solar and wind that we are having currently all over the world. Energy storage is a still a very large bottlekneck.
- greglindahl 9y agoAs one example of a new buyer who can use bursts of electricity: If you have a large number of electric cars with big batteries, which don't have to charge every day, and they're plugged in both at work and at home, you can do a lot of good by having them charge when electricity is cheapest. And it's not exactly high-tech, it's just a little bit of schedule prediction.
- usrusr 9y agoSure, but your grid operator won't offer you the low rate unless you can convince them that your fleet will actually not charge during high demand and not just conveniently switch over to the fixed rate socket.