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If an operator does not agree to provide power at a certain price in advance with an agreed relability he should be penalized.

And in fact they are. Renewables are penalized for intermittency by receiving a lower than the average clearing price per MWh, while new coal and nuke plants are penalized by not being built.

The free-riders under the current system are the fully amortized brown coal plants, who - because they face low marginal costs and do not face the threat of liquidation due to momentary cashflow shortfalls - can sell baseload at the average clearing price rather than a lower feed-in rate.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Fri Aug 3rd, 2012 at 07:34:59 PM EST
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