"What does renewable energy mean for utility bills?
In Alberta’s deregulated market, the system operator chooses electricity from the lowest-bidding power producers first, working its way up to more expensive bidders until demand is met. The most expensive generator chosen sets the hourly price at which all selected producers are paid. As renewable have no fuel costs, their producers bid at $0/MWh, and are selected first. Therefore, adding more renewables has the effect of drawing down electricity prices (Figure 5)"
So says the previous poster.
Here's a thought. There's no obligation for electrical power generators (solar, flare gas, geothermal to meet the "targets " they may apply to the utility to inject into the grid.
Just maybe that is a fatal flaw in the bidding process. Do you suppose that known intermittent supplies are worth only from some negative value; to zero value to a value always less than it costs to replace that which can't be provided on a demand basis.
The cure would be to penalize the cheaper winning bidders if they can't produce on a continuous basis or compensate for the production that the utility has to backup from the pool of producers who can provide reliable power........all the time.
Then we'd find out what produces the cheaper electricity
In Alberta’s deregulated market, the system operator chooses electricity from the lowest-bidding power producers first, working its way up to more expensive bidders until demand is met. The most expensive generator chosen sets the hourly price at which all selected producers are paid. As renewable have no fuel costs, their producers bid at $0/MWh, and are selected first. Therefore, adding more renewables has the effect of drawing down electricity prices (Figure 5)"
So says the previous poster.
Here's a thought. There's no obligation for electrical power generators (solar, flare gas, geothermal to meet the "targets " they may apply to the utility to inject into the grid.
Just maybe that is a fatal flaw in the bidding process. Do you suppose that known intermittent supplies are worth only from some negative value; to zero value to a value always less than it costs to replace that which can't be provided on a demand basis.
The cure would be to penalize the cheaper winning bidders if they can't produce on a continuous basis or compensate for the production that the utility has to backup from the pool of producers who can provide reliable power........all the time.
Then we'd find out what produces the cheaper electricity
Comment