4 ms·

I think power grids have a kind of similar problem, super oversimplifying here because this isn't my area: Baseload power plants (e.g. coal) are large and compa

I think power grids have a kind of similar problem, super oversimplifying here because this isn't my area: Baseload power plants (e.g. coal) are large and comparatively efficient, but they need to be kept running continuously, and they take a long time to restart. Other types of plants (e.g. natural gas) can start and stop more quickly to meet surges in demand, but they aren't as efficient overall. In order to keep the second type of plant available, but not constantly running, there's a whole separate contracts market for short-notice capacity. What could such a market look like for e.g. hospital equipment capacity contracts? Food growing capacity?

RubenvanE 7y ago
Your analogy with the energy market is quite good, the only thing I would address is that coal plants aren’t more energy efficient than gas plants (roughly 40% and 50%, respectively). The reason coal plants provide the base load is that the raw material, coal, is cheaper than gas. However, with falling oil and gas prices this might change in the ‘near’ future. The reason the US military (among others) buys so much equipment even during relatively peaceful periods is to keep alive the ability to produce massive amounts of tanks etc. whenever they really _do_ need them. So just not outsourcing these kind of essential goods to foreign nations might be already a great leap in the right direction.