alt Hacker NewsHow is this getting out of the way:
“In markets like Texas, the wholesale price of electricity is set equal to the price of electricity from the most expensive generator needed to meet demand, often referred to as the marginal generator.”
Replies
adgjlsfhk1 • today at 4:53 AM
This is great for renewable energy. It means that solar plants and batteries can get payed at coal/nuclear rates, and during the middle of the day, fossil fuel plants have to turn off since they can't compete with solar prices.
I‘m not sure why people are often confused about this. Electricity is at a basic level a commodity. A kWh from solar isn‘t any different than 1 kWh obtained by burning coal.
If the current market situation allows for a price of 12ct/kWh, why should I - just because I have the more effective technology - get less than the fossil guy?
Generally this is even beneficial because it could increase margins for renewable and grid scale batteries