alt Hacker NewsNope. What you're describing is an artifact of certain electricity markets work for spot prices. This is artificial, not inevitable. Large industrial customers often bypass those markets and contract directly with producers for fixed rates.
Nope. What you're describing is an artifact of certain electricity markets work for spot prices. This is artificial, not inevitable. Large industrial customers often bypass those markets and contract directly with producers for fixed rates.
It's the natural way commodities are priced in the market.
Those large industrial customers often also end up selling the electricity in the market. Power companies need multi-decade commitments before they are willing to build anything as capital intensive as a nuclear reactor. In that time, industrial customers need to modernize their factories to keep them competitive. Which is often the time they realize it's more profitable to invest that money somewhere else and wind down the old factories.