It’s funny how capitalist apologists in this thread attack the format of a tweet and people not reading the actual article, when they clearly haven’t read the original article.
Negative prices are only mentioned in passing, as a very rare phenomenon, while most of it is dedicated to value deflation of energy (mentioned 4 times), aka private sector investors not earning enough profits to justify expanding the grid. Basically a cautionary tale of leaving such a critical component of society up to a privatized market.
Without reading the article, I could already see what the problem was.
Unless you have capital to invest, you can’t expand or improve the power grid. That capital can either come from the gov’t–through taxation–or from private industry. If you, personally, have enough capital to do so, you can build a fully off-grid system, so that you aren’t dependent on anyone else. But then if shit happens, you also can’t get help from anyone else. (Also, most houses in urban areas do not have enough square feet of exposure to the sun to generate all of their own power.)
Fundamentally, this is a problem that can only be solved by regulation, and regulation is being gutted across the board in the US.
Negative prices are only mentioned in passing, as a very rare phenomenon
Negative prices are occurring more and more frequently. The cause is baseload generation: it can’t be dialed back as quickly as solar increases during the day, and it can’t be ramped up as fast as solar falls off in the evening. The baseload generators have to stay on line to meet overnight demand. Because they can’t be adjusted fast enough to match the demand curve, they have to stay online during the day as well.
The immediate solution is to back down the baseload generators, and rely more on peaker plants, which can match the curve.
The longer term solution is to remove the incentives that drive overnight consumption. Stop incentivizing “off peak” consumption, and instead push large industrial consumers to daytime operation.
It’s funny how capitalist apologists in this thread attack the format of a tweet and people not reading the actual article, when they clearly haven’t read the original article.
Negative prices are only mentioned in passing, as a very rare phenomenon, while most of it is dedicated to value deflation of energy (mentioned 4 times), aka private sector investors not earning enough profits to justify expanding the grid. Basically a cautionary tale of leaving such a critical component of society up to a privatized market.
Without reading the article, I could already see what the problem was.
Unless you have capital to invest, you can’t expand or improve the power grid. That capital can either come from the gov’t–through taxation–or from private industry. If you, personally, have enough capital to do so, you can build a fully off-grid system, so that you aren’t dependent on anyone else. But then if shit happens, you also can’t get help from anyone else. (Also, most houses in urban areas do not have enough square feet of exposure to the sun to generate all of their own power.)
Fundamentally, this is a problem that can only be solved by regulation, and regulation is being gutted across the board in the US.
Negative prices are occurring more and more frequently. The cause is baseload generation: it can’t be dialed back as quickly as solar increases during the day, and it can’t be ramped up as fast as solar falls off in the evening. The baseload generators have to stay on line to meet overnight demand. Because they can’t be adjusted fast enough to match the demand curve, they have to stay online during the day as well.
The immediate solution is to back down the baseload generators, and rely more on peaker plants, which can match the curve.
The longer term solution is to remove the incentives that drive overnight consumption. Stop incentivizing “off peak” consumption, and instead push large industrial consumers to daytime operation.