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Why wouldn't price fluctuations influence consumer behavior? Electricity is purchased in bulk in Nord Pool whose prices fluctuate by the hour. Consumers, who ac
by bjourne 3y ago
Why wouldn't price fluctuations influence consumer behavior?
Electricity is purchased in bulk in Nord Pool whose prices fluctuate
by the hour. Consumers, who account for 58% of production, certainly
regulate their consumption based on prices. Even industries do and
there have been several high-profile examples of paper mills reducing
their production due to high electricity costs. Wind availability and
temperature is what determines electricity prices, neither of which is
particularly hard to predict.
Regarding your second point, this is handled via imports and exports
and standby capacity. The Nordic power grid is getting denser which
reduces the chances of catastrophic failure. While the Swedish
right-wing press has predicted brownouts and "electricity
ransoning" ever since the right-wing party made more nuclear part of
their election platform back in 2020 (what a coincidence...),
those dire predictions has not come true.