4 ms·

When it’s dark people turn on the lights. When it’s cold they turn on the heating. Those are the drivers of demand. Industrial demand (aluminium smelters etc)

When it’s dark people turn on the lights. When it’s cold they turn on the heating. Those are the drivers of demand. Industrial demand (aluminium smelters etc) are more price sensitive, but they tend to be billed by the minute anyway. some “residential” people will be happy to turn off their Bitcoin or weed growing equipment when the price rises but that shouldnt be residential. The wealthy will have their own storage systems to smooth out the bumps and thus spend less than those who are poorer. You may like that idea, but for most people this would be devestating and less to more deaths.

WalterBright 5y ago
Every house has many energy-hungry devices that can time shift their use. 1. electric car battery recharging 2. hot water heater - heat it to the max of the range when electricity is cheap 3. A/C - cool it to the coldest end of the range when electricity is cheap and so on. 1,2,3 are just the start of what can be done, cheaply, to shape demand to the price. > devestating People adjust their use of gasoline based on the constantly shifting prices. This is how demand is shaped to match supply.
- mschuster91 5y ago
  > People adjust their use of gasoline based on the constantly shifting prices. This is how demand is shaped to match supply. Yeah, but unlike electricity gas can be stored efficiently and long term - your typical 5-series BMW has ~60l of tank volume, a Ford F150 has ~90-100l, not to mention jerry cans. That means when gas is expensive, a consumer usually can choose to simply fill up the tank at another date.
  - WalterBright 5y ago
    People don't actually do that. Electricity can be "stored" in hot water in the hot water tank, the thermal mass of the house, and in the battery in the electric car. This can greatly mitigate the demand for electricity at night, for example.

WalterBright 5y ago

Every house has many energy-hungry devices that can time shift their use. 1. electric car battery recharging 2. hot water heater - heat it to the max of the range when electricity is cheap 3. A/C - cool it to the coldest end of the range when electricity is cheap and so on. 1,2,3 are just the start of what can be done, cheaply, to shape demand to the price. > devestating People adjust their use of gasoline based on the constantly shifting prices. This is how demand is shaped to match supply.

mschuster91 5y ago
> People adjust their use of gasoline based on the constantly shifting prices. This is how demand is shaped to match supply. Yeah, but unlike electricity gas can be stored efficiently and long term - your typical 5-series BMW has ~60l of tank volume, a Ford F150 has ~90-100l, not to mention jerry cans. That means when gas is expensive, a consumer usually can choose to simply fill up the tank at another date.
- WalterBright 5y ago
  People don't actually do that. Electricity can be "stored" in hot water in the hot water tank, the thermal mass of the house, and in the battery in the electric car. This can greatly mitigate the demand for electricity at night, for example.