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They will be paid not for the energy they produce but for the ability to produce energy on demand. It's a grid operation cost and is already financed as such in
by Gasp0de 3y ago
They will be paid not for the energy they produce but for the ability to produce energy on demand. It's a grid operation cost and is already financed as such in Europe. Companies can sell the guarantee to produce a certain amount of energy within X seconds and they are compensated for that. In combination with the low LCOE of renewables, it is way cheaper than nuclear power for example.
- XorNot 3y agoThe current bid for demand response though is still higher then for conventional operation, and piggybacks off the infrastructure for gas supply which runs constantly If you don't have regularly operating gas power stations any more, then the cost for underproduction protection is going to be a lot higher - because rather then running an extra turbine or increasing fuel burn, you have to justify the whole powerplant and it's sort infrastructure existing.