|
|
|
|
|
by smartbit
6 days ago
|
|
Both users and companies could be incentivized to lower their consumption of electricity by increasing the price astronomical during periods of scarcity. A minimum of 1 Ampere per household without surcharge and beyond that enough to pay off the infrastructure. Taking a sauna or charging your car during peak times would costs, let’s say, €500. Assuming that in the north of Sweden there is ample Hydro energy, in the north the surcharge would be lower than in the south. I strongly believe people and organizations would accommodate, just like during winter times in the north of Sweden one wears a different coat than in the south. But with the current system one isn’t incentivized to adapt power consumption to cost and hence more & more costs are made to build power lines from the north to feed the south of Sweden. And the same for standby fossil fuel plants. Also prepaid electricity bills with automatic cutoff when exceeding, remaining 1 Ampere. Similar to the days when homes/tents would be heated by burning wood, during summertime one needs to collect enough firewood for the whole winter. Different times but in concept nothing new. |
|
A bakery for example will produce bread at a loss if they have a contract and the value of the contract is higher than a temporary increase in electricity. If you allow market prices to rise unlimited, the price will increase to the point where breaking a contract is cheaper than not producing. Some companies in the last crisis did invoke force majeure when prices got too high, which as a society is a very poor way to incentivize behavior.
The result is that voters will elect a government that solves the problem, rather than change behavior. We have also seen that in eu for the last few elections. The Swedish elections in particular has been dominated around the topic of energy.
Hydro energy would help to keep the market stable in Sweden if the value of the natural resource would also stay in Sweden. Right now that resource is being primarily sold off by private actors through exports to countries like Germany and Denmark, thus doing little to keep the market stable for Swedish consumers. The government could nationalize that resource, deeming it as a natural resource owned by the Swedish citizens and thus any revenue gained from selling electricity would automatically go to Swedish citizens to pay their energy bills.