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Good God, the Texas power grid is so fucked by speculation.
by hlieberman 6y ago
Good God, the Texas power grid is so fucked by speculation.
- mrDmrTmrJ 6y agoWhy do think speculation is an issue here? My understanding is that electrical markets are physical markets in that you literally have to either provide capacity (electricity) or take delivery (use the electricity) to participate. And you need a utility level power meter (for buyers/users) or to pass a detailed interconnection queues (for sellers/providers) to participate. The reason prices go negative is federal production tax credits incentivizes wind power producers to be able to bid a negative price and still make money. Said differently, the negative price in the market is outweighed by the positive revenue from the production tax credit. Am I missing something here about the structure of the 15-min real time power market? I'm asking as I'm genuinely trying to learn more about this stuff.
- cosmolev 6y agoHow can you speculate an asset that can't be stored?