2 ms·
Also an option indeed, but eventually the consumers pay for this difference. The incentive with the 'normal' merit order model is that the most expensive gener
by ragebol 4y ago
Also an option indeed, but eventually the consumers pay for this difference.
The incentive with the 'normal' merit order model is that the most expensive generator is that they make barely a profit if at all. Not too attractive.
Better build generation capacity that has lower operating costs (ie. no fuel, ie. renewables).
At least, that is the theory. I really wonder what happens to this model and the incentives once renewables are the majority and stretch further along the merit-order curve's X axis, pushing out fossil fuels.