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But I think it will, and we see this already happening. Currently, the electricity price is so high that it makes economic sense to build wind and solar that ar
by tuukkah 4y ago
But I think it will, and we see this already happening. Currently, the electricity price is so high that it makes economic sense to build wind and solar that are better for the environment.
I'm not saying it should be an unregulated free market - we've seen those don't work (exactly because of the externalities). But this does not mean there cannot be regulated markets and partial markets. The grid is infrastructure that shouldn't be run as a company, but production and storage capacity can be bought from markets as long as the grid rules factor in the externalities.
- pixelfarmer 4y agoBut the energy market is not natural, it is completely artificial, based on rules which are more befitting to a non-market setup. For example, Europe has the largest (not in size but connected power) synchronized grid in the world. That means you cannot just run some solar cells and connect them to the network, this is controlled externally. Which completely breaks this "demand and supply" already, not to talk about how the energy price is formed. Read: You cannot even run this as an unregulated market, it wouldn't work. That requires every company having its own electricity grid, and for example the possibility that your house has 10 different power connectors available, so you can actually choose which one to pick. That is conceptually broken. And just the grid as infrastructure doesn't work, either, because of reasons outlined above. Maybe forcing the idea of a market on everything is a dogma which we should eradicate out of our heads, the sooner the better.