Wednesday, October 26, 2011

When Wind Made Electricity Free

If you saw the SBS special Power Play (on the causes of electricity price rises) you would have seen one of the experts talking about how renewables can actually drive the price down. He compared it to food - where a 'bumper crop' brings downs the price at the market, as sellers compete to sell their product.

Recently, there was a classic example of this. For just a few minutes the market price of wholesale electricity dropped to $0.00. This is an extreme example, and only happened for a few minutes, but is an example of how the price can come down when renewables are in the market.


Brad said...

This happens regularly in South Australia! Check out the AEMO aggregated price/demand for any particular month -

david said...

Thanks for that link Brad. It was interesting to get a look 'behind the scenes'. :)