3 ms·

You need quarter-hours where renewables set the price for power. That's only happening now that renewables have reached sufficient penetration of the market. A

You need quarter-hours where renewables set the price for power. That's only happening now that renewables have reached sufficient penetration of the market. And it will get more as batteries come online. In a commodity market, the price is always set by the most expensive producer that is still able to sell. That's natural - why would I sell my apples cheaper than the other farmer if you need so many apples that you have to by from both of us?

stevesimmons 6mo ago
... because you may have signed a longer term contract that might in turn guarantee offtake from you rather than the other farmer? This marginal price is only for the spot market right? So the key question is more what % of the mix is spot vs longer term. And thus what the overall impact is on total blended price.
- konschubert 6mo ago
  That exists as well it’s called PPA in the power market, a power purchase agreement. But ultimately, due to arbitrage, PPA prices will converge towards expected spot market prices.