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But your price in that case should be really outrageous because your just externalizing the cost of the utility having to build a peaker plant somewhere and run
by StillBored 5y ago
But your price in that case should be really outrageous because your just externalizing the cost of the utility having to build a peaker plant somewhere and run it on a couple peak days a year (and maintain the infra). That cost should be averaged over the year for someone who uses 100% grid electricity, but for someone who only uses it when the production is the most expensive then they are freeloading on everyone else. That is sorta the point of the whole article.
It is also fundamentally the problem with wind and PV even at grid scale. Its true costs are buried behind the (generally) natural gas turbines being built to back it up because the grid can't just say "sorry no power right now, you get to freeze" like happened in TX last year. So, one has to take the max power usage, and assure there is capacity even if it happens to be dark/cold and without wind. Usually there is a fair bit of excess capacity in place to deal with plants have to shutdown for maint/etc so it just becomes a question of assuring that all the plants don't do maintenance at the same time (enron/CA anyone?), and they aren't going to be doing maintenance during the parts of the year when peak power draw happens (generally the dead of winter, and summer).