Re:Clearing price for supplying power to Texas grid –$31.65
by ggm on Saturday February 20, 2021 @06:05PM
(#26208900)
Externalities are, in my opinion, one of the primary reasons for market failure.
This. Amongst other reasons (market distortions, gaming, profit incentives which misalign to the actual role of the markets target service)
The demand pricing thing, is entirely sensible inside the construct of market for energy. But, the system itself demands both load shedding and load returning and has transmission system dependencies. Price driven load shedding can (if understand it correctly) drive more things off-line when you need to keep the, online.
It's cascading failure stuff. But, not everyone's bidding model is tuned to optimise the overall goal of delivering power.
This. Amongst other reasons (market distortions, gaming, profit incentives which misalign to the actual role of the markets target service)
The demand pricing thing, is entirely sensible inside the construct of market for energy. But, the system itself demands both load shedding and load returning and has transmission system dependencies. Price driven load shedding can (if understand it correctly) drive more things off-line when you need to keep the, online.
It's cascading failure stuff. But, not everyone's bidding model is tuned to optimise the overall goal of delivering power.