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Slightly off-topic, but what is more profitable: energy generation (power plants) or electricity distribution (the grid)? Would love to hear from those who watc
by surfingdino 2y ago
Slightly off-topic, but what is more profitable: energy generation (power plants) or electricity distribution (the grid)? Would love to hear from those who watch this space.
- jncfhnb 2y agoDistribution prices tend to be governed by regulators. A solar plant is very profitable to run right now. Probably that.
- surfingdino 2y agoSo the grid operators are restricted, but power plant operators are free to set energy prices?
- jncfhnb 2y agoI think it’s typically an auction system so generally speaking you expect the plants with the cheapest energy to undercut the rest. Off the top of my head I’m not sure how concerns of collusion are dealt with when there’s few participants. There’s probably some sort of regulatory stick in there.
- surfingdino 2y agoI was under impression that the grid operators would have more leverage over power plants when it came to setting prices, after all, if you cannot send your output t the customers, you are sort of stuck with it.
- jncfhnb 2y agoGrid operators are obligated to provide electricity by regulators. I imagine they don’t get a whole lot out of that monopsony