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by liketochill 1175 days ago
I agree the reserve mechanisms provide the incentive to pay generators to exist with an entire gas turbine, generator, switchgear, operations staff, health and safety staff, maintenance staff, transformer, interconnection, land, environmental permits, hr and accounting departments to be “available” but not generate except in the time that renewables can’t. The only difference in cost for the plant to exist and not run but be ready and to run is the cost of the fuel.

So we still have to pay for dispatchable generation if we want to have power on a calm cloudy day week. We can add that cost to the cost of the storage and overbuilding of capacity that allows solar or wind to deliver rated power overnight. Or live with blackouts

1 comments

> The only difference in cost for the plant to exist and not run but be ready and to run is the cost of the fuel.

Which is over 50% of the cost of running a combined cycle plant (page 12: https://www.lazard.com/media/sptlfats/lazards-levelized-cost...) -- but also misses that you'd need far fewer plants if you build renewable + storage generation to match the 99% use case so the total cost spend on peakers would drop dramatically even if some were still needed to provide backup generation.

Also has the added benefit of almost entirely decarbonizing power generation.