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Rules for this market are a lot more complex than a straightforward producer / consumer one though. That give a lot of room for biased / non-optimal behaviors
by bsaul 4y ago
Rules for this market are a lot more complex than a straightforward producer / consumer one though. That give a lot of room for biased / non-optimal behaviors
For example, only gaz-based electricity producers « needs » to be paid such a high price. Nuclear or renewable would be perfectly fine with much lower price.
Or, if we had not one market, but one market per type of energy used to produce electricity, we would also have a « market driven » pricing, however the end-result would likely be much much different.
- toast0 4y agoThere's one market for grid delivered electricity because within the grid, electricity is mostly fungible. There's details of course, but if I need X kW @ 240VAC to run my house, business, or factory, my equipment doesn't care if it's from wind, solar, nuclear, or lemon batteries, as long as it's within the specifications, well synchronized and continuous. There's some amount of market preference for different generation types, but that's a small portion of the load, so it's handled outside of the grid operation marketplace. It's also true that grids with limited interconnection have separate markets. You could run a grid on a cost plus basis, but you lose the benefits of market economics as well as the negatives.
- dkjaudyeqooe 4y agoYes but it's a multi-buyer multi-seller simultaneous auction for a required electricity load. Some sellers will get more than they offered, but that's how the auction works, there can only be one market price to secure the given quantity of electricity.