That massive spike of 50c/kWh at the left looks tiny compared to today even though that’s already insanely expensive

  • banneryear1868@lemmy.world
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    11 months ago

    I guess with my knowledge of energy markets, a situation like that would result in higher prices just by the way the market functions, responding to supply and demand. The graph here appears to be a market clearing price rather than a price after adjustments, where a lot of incentives would be brought in like an intentional price hike.

    We were in the opposite situation though where we were running into surplus overnight during a period of energy transition. You’d see these stupid misinformed articles being like, “the government is giving away YOUR electricity to the US!” Was like during the 2003 blackout where we needed to bring large loads online carefully alongside generation, people were freaking out how casinos and industry got power before them. The need for dispatchable loads connected to the high voltage transmission grid in that situation wasn’t as headline worthy.