alt Hacker Newsin the UK the price everyone pays is set according to the marginal price
essentially this means if there's one milliwatt of gas on the grid: everyone pays the gas price
as a result consumers see very benefit from renewables
(but the renewable generators are making out like bandits)
Replies
julosflb • yesterday at 9:14 PM
Yes that's sound weird but this is to make sure gas peaker plants which by definition run only a fraction of time can be profitable and be built.
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This is the right move. The marginal price is the price that balances supply and demand by definition, and this must be the case on the grid at all times, even to the last milliwatt, or you immediately get a Spain situation with cascading blackouts where huge parts of the grid go dark.