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Which is to say that it's determined by both the supply and demand side: if the price were lower there would be people willing to buy at that price but not enou
by makomk 4y ago
Which is to say that it's determined by both the supply and demand side: if the price were lower there would be people willing to buy at that price but not enough to sell them, and if it were higher there would presumably be people willing to sell at that price but not enough buyers. It is, in some fairly fundamental sense, the actual market price of electricity at that point in time.
- locallost 4y agoYes but renewables & nuclear suppliers would be willing to deliver for a lot less money. The question I answered was, why is it so expensive when we don't use so much gas. The price however gets set by the most expensive supplier. As soon as you need to use gas to deliver electricity, the price skyrockets.
- dkjaudyeqooe 4y ago> The price however gets set by the most expensive supplier. Because that's how the auction works, but it's misleading, it's the cheapest supplier that can deliver the final GW hour required to satisfy the projected load. Other multiparty auctions with a volume requirement work the same way.