3 ms·
True but not when the upkeep of that infrastructure costs more than the profits you get from selling your high supply product in the far away high demand market
by doikor 4y ago
True but not when the upkeep of that infrastructure costs more than the profits you get from selling your high supply product in the far away high demand market.
Obviously with the current market prices the cost of the transmission capabilities is a rounding error but if we get back to the electricity prices of a year or two ago the costs of transmission could start to dominate the price again so you have to be careful about investments like this (just like you have to be with nuclear plants for the case that the price on the markets is goes permanently under your production costs)
And transmission capability upgrades are really long term investments. Sweden started lately to try and fix this issue. If that project finishes on time it will take 14 years to finish. These are the kind of timescales where building a new nuclear power plant can be a faster fix.