5 ms·
This is not uncommon with other forms of generation with high capital cost and low production opportunity costs. The Netherlands almost managed to melt the Belg
by jerven 14y ago
This is not uncommon with other forms of generation with high capital cost and low production opportunity costs. The Netherlands almost managed to melt the Belgian high power grid importing very cheap French power a few years back. The French nuclear power plants would produce anyway even if they only made a single cent as one cent is better than no cent ;) Windmills owners have the same issue, once build cost of energy production is near zero so sell what you make for what ever the market will pay. Gas, oil and coal stop producing the moment the fuel becomes more expensive than the worth of the produced energy (bound by shut down and start up times).
I expect the same solution. More transmission capability or charging more and fixing the market issue. This really is a market issue in that the east europeans don't charge enough for transmission costs to stop the Germans from doing.
Production variation is a problem but not such a big one as price volatility and consumer (demand) volatility. i.e. power demands at peak times. i.e. when everyone wakes up and turns on their coffee machine etc...
Large (esp. direct drive) windfarms are actually good at dealing with the demand volatility as they can spin up and down in minutes. While weather volatility is in the hours. Same day weather forecast is very good. So inside a grid windfarms are nice. Its when transmitting outside the grid like nuclear they can be mean to other producers.
- Gravityloss 14y agoIt is actually very interesting to look at different power plants' startup price thresholds. Nukes and wind are always on, as they cost littleöto keep "on". Hydro depends on time of year, reservoir size etc. Coal is kind of in the middle. If you use the waste heat for district heating in the winter, the logic changes. Natural gas is the last thing turned on. The plants are really cheap to build but gas costs a lot. Depends if you have a deal with Russia. It is an interesting and multifaceted field.