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So they're paying money (or at least, producing little income) to keep the plants working when it is not needed, so that things are ready to go when it inevitab

by ssl-3 3y ago

So they're paying money (or at least, producing little income) to keep the plants working when it is not needed, so that things are ready to go when it inevitably becomes possible for the plants to spool up and make money when their need increases. Makes sense.

remus 3y ago
Exactly. They can do this (i.e. keep producing power when the spot price is negative) because a plant that can respond rapidly to increased demand can charge a large premium in times of need.