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by jhayward
2560 days ago
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This mis-states how electrical generation markets work and relies on the fallacy of "baseload", which is an artifact created by the past-grid domination of large thermal plants for generation. In my market (Texas/ERCOT) there is no separate market for "firm" power. You either run or you don't on an every-15-minutes basis. You are either a price "taker", or a price "maker". In this market the NPPs are always, always, price "takers".
They absolutely compete with the price makers, which are always either wind, solar, or most commonly, natural gas. Coal is always a price "taker" in this market as well. Whether a generator is a "taker" or "maker" in terms of pricing is a function of the economic impact to it of not running in a given bid segment, and its ability to compete in the bidding for the "last MW" of the bid-price stack. Large thermal plants like NPPs rely very much on the economics of being able to get premium pricing for every single minute of the day and night. In a competetive market they can't do that, because gas/wind/solar can under-price them by very large margins. So the NPPs become un-economic to run (if already running), and very much un-fundable to build as new capacity. The same market force applies to coal. |
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