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No, that is a simplistic explanation that misses the key concept. When you have a power "glut" you generally aren't decommiting many resources unless your comm
by 4thaccount 8y ago
No, that is a simplistic explanation that misses the key concept.
When you have a power "glut" you generally aren't decommiting many resources unless your commitment and forecast were insanely off. What happens is that the more expensive resources are sent to their minimum and are therefore no longer setting price. At that point, the cheapest units (wind and solar) are then setting price. No energy market in the US has logic to say "I don't need anymore and will then just go to zero". The linear programming problem is still looking at the cost to balance power and load (put simplistically).
Storage will help solve some issues, but will likely not be the short-term panacea people are making it out to be.