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Exactly. Basically the energy market is changing very rapidly. One thing that is enabled by renewables and batteries is selling energy in much smaller units. It
by jillesvangurp 3y ago
Exactly. Basically the energy market is changing very rapidly. One thing that is enabled by renewables and batteries is selling energy in much smaller units. It used to be that large energy companies would buy/sell energy at a price that was fixed for some amount of time like half an hour or even more. If you fire up a gas turbine, it's basically going to be producing until you shut it down. There's no point in trading in small chunks. However, with renewables, the length of those time slots has come down. So, instead of hours you can now buy energy in chunks of minutes at the same price. Eventually that comes down to seconds or even fractions of a second. All controlled by algorithms.
So, you get energy companies that are able to adapt very rapidly to peaks and dips in energy production and demand. And that in turn incentivizes large consumers of energy to invest in batteries. Top them up when energy is cheap, sell off energy when it is expensive and electricity companies are buying. Use solar panels to get some free energy when it's available. Store any excess, and sell it when energy prices peak. Buy energy when you need to. That kind of is the game now.
If you think about the insane amounts of batteries that are going to be produced in the next few decades to power ships, trucks, planes, cars, grid batteries, domestic batteries, etc. it becomes clear that managing the charge state of these batteries is an enormous opportunity. When do you charge? Can you sell energy back to the grid when its scarce? We are talking many twh of batteries produced per year accumulating to a sizable percentage of the world's energy production (around 25000 twh). Each of those batteries can be cycled thousands of times. It starts adding up. A few decades from now, we'll have tens to hundreds of twh of battery out there. Most of them at a high percentage of charge most of the time, mostly plugged in and ready to charge/discharge in milliseconds. That's a lot of energy just sitting there. Even a small percentage of that is a huge amount of power.