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A few days in advance, and no installation or maintenance costs. It costs about $4000 to rent a 1000kW diesel generator for a week. It consumes about 70gal of d
by jychang 6y ago
A few days in advance, and no installation or maintenance costs. It costs about $4000 to rent a 1000kW diesel generator for a week. It consumes about 70gal of diesel per hour, and it costs $2.90 ish for diesel in Texas. That comes to $4000 + $203/hr running costs.
At one point, Texas electricity prices hit above $9000/MWh. Running the generator for 1 hour would net you $9000. Not bad for peak profit. The average profit will be a bit lower; here's some very rough back of the envelope math:
Taking a look at an example here: https://dfw.cbslocal.com/2021/02/22/texans-sky-high-power-bills-wholesale-electricity-pricing/ https://dfw.cbslocal.com/2021/02/22/texans-sky-high-power-bi...
> On a typical February day, she pays Griddy less than $2.50 for power. But the one-day cost spiked to hundreds of dollars after the storm. In all, she was automatically charged $1,346.17 for the first two weeks of February
So $2.50 a day over 2 weeks is $35. The spike to $1346 is 38x her normal cost, and Griddy uses wholesale prices. I see wholesale costs around 6.7cents/kWh, so at 38x normal pricing, that means electricity would cost around $2546/mWh. Not as high as $9000, but still a nice profit averaging for 2 weeks. Profit per hour would be $2343/hour; multiply that by 24/day and 14/two weeks, gets you $787,248 total. Subtract out $4000 for the rental, and you get $783,248.
Close to a million dollars over 2 weeks is not a bad haul. Even if you divide the price by 2, it's still pretty good.