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So "grid parity" is an illusory target, in a sense, because it is a moving target.

A lot depends on pricing structure for consumers.

If business/industrial electricity prices are fixed and predictable, then grid parity is the threshold where self-consumption becomes attractive. This is surely going to be a big deal in solar.

On the other hand, I wonder if there are industries which are able to make money consuming cheap power on an irregular basis? As a power sink when renewables drive spot prices negative, for example?

It is rightly acknowledged that people of faith have no monopoly of virtue - Queen Elizabeth II

by eurogreen on Mon Mar 25th, 2013 at 12:29:35 PM EST
grid parity for solar is actually simple: it is indeed linked to self-consumption and, as most installations are individual ones, the price that matters is the retail tariff (currently at 28c/kWh in Germany, ie rather high and certainly higher than solar costs).

For producers who deliver power on the wholesale markets (most wind farms and the industrial solar plants), it's the spot market that matters.

There are indeed industrial companies that like interruptible power (in France, the cheapest tariff for industrial users is one where EDF has the right to switch off these consumers with limited notice) - either because they have non-time sensitive processes, or because they have back up capacity of their own.

Wind power

by Jerome a Paris (etg@eurotrib.com) on Mon Mar 25th, 2013 at 12:44:26 PM EST
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