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Many markets already do this: for example California pays generators a mixed rate per kWh and kW. But just pricing per kWh can work. If the limit is availab
by bryanlarsen 2y ago
Many markets already do this: for example California pays generators a mixed rate per kWh and kW.
But just pricing per kWh can work. If the limit is available capacity at 6PM, then those kWh are the most profitable and capacity will be built to meet demand at 6PM.