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The real question is will growth of solar push electricity prices down enough that fossil plants get decommissioned early because they are no longer sufficientl
by londons_explore 3y ago
The real question is will growth of solar push electricity prices down enough that fossil plants get decommissioned early because they are no longer sufficiently profitable?
- collinmcnulty 3y agoAlmost certainly, assuming the growth of solar occurs as stated. The real tipping point is the fuel-only operating cost of a given plant, which is a function of the plant's efficiency and the price of its fuel.
- londons_explore 3y agoRemember that many plants have futures contracts setting the price for both fuel and electricity sometimes 10+ years in advance. Theoretically futures contracts should never affect wether an activity is financially worthwhile or not, but realistically a profitable contract can keep a plant online even though it otherwise makes no sense to do so.
- adrianN 3y agoDon't forget the CO2 price.
- huytersd 3y agoIt depends on what you mean by fossil fuels. With solar and wind you absolutely need gas peaker plants to come online quickly and provide power during downtime so that’s not going away anytime soon. Batteries may offer some replacement but we’re not there yet. Pumped hydro is probably the best bet if governments can work out the issues with it and start getting it right.
- sheepybloke 3y agoThey've already majorly affected what sort of plants get built. For example, most of the new build plants are natural gas based and designed to be started quickly to supplement the current production of power.