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That's not how markets work. Removing demand tends to reduce investment in supply. Or the opposite: maybe they moved to Texas because there is often excess chea
by brutusborn 3y ago
That's not how markets work. Removing demand tends to reduce investment in supply. Or the opposite: maybe they moved to Texas because there is often excess cheap energy due to renewables.
They are causing the same amount of 'strain' (demand) as any other industry. Their demand will attract investment in supply the same as any other industry. The advantage is that their demand can be shed quickly, which is useful for the grid operators, and helps 'protect society.'
- etrautmann 3y agoYes, and the marginal benefit to society of those kilowatts is the concern here in emergency situations. The grid is also not a normal free market operating under normal free market principles. Regulated monopolies are a different beast with different constraints. Given the challenge of supplying during peak loads, attempting to prioritize use cases strikes me as a reasonable endeavor in principle.
- infecto 3y agoBut is Texas unlike most other US states? There is a governing body Ercot with two different transmission maintainers but the generation is indeed a relatively free market with free market pricing.