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the benefit of adding additional low marginal cost volatile energy harvesting are their free-standing benefit, plus the portfolio benefit of reducing the variability of the combined power supply.
I'm not really arguing with you, just wondering if there may be some justification in legacy carbon based generators feeling used because they are expected to be available to provide base load at any time wind etc. doesn't, and yet much of their main "market" is being undermined and undercut by wind. Their capacity utilisation (and revenue) goes down, while their costs go down much less (just by their variable costs).
It comes down to whether or not legacy producers should also get paid for providing capacity, not just output, to compensate them for their fixed costs.
Of course many legacy plants paid back their investors a long time ago and should be happy for any business they can get provided it covers their fixed and variable costs. However if at some point in the future they become uneconomic and start closing wholesale, the entire entire generation portfolio may become unable to meet peak demand at valley production times even with a wider range of renewable options in place.
Index of Frank's Diaries
by Frank Schnittger - Aug 16 12 comments
by Frank Schnittger - Aug 8 46 comments
by Frank Schnittger - Aug 9 16 comments
by Helen - Aug 2 15 comments
by Oui - Aug 6 22 comments
by Frank Schnittger - Jul 17 147 comments
by Frank Schnittger - Jul 29 93 comments
by Cat - Aug 2 14 comments
by Frank Schnittger - Aug 1612 comments
by Frank Schnittger - Aug 916 comments
by Frank Schnittger - Aug 846 comments
by Oui - Aug 622 comments
by Cat - Aug 214 comments
by Helen - Aug 215 comments
by Frank Schnittger - Jul 2993 comments
by Oui - Jul 265 comments
by Frank Schnittger - Jul 17147 comments