Sorta. Without good transmission and storage systems, producers will curtail their production and feel less inclined to invest in renewables since it’ll occasionally generate losses for them
That’s the problem with private generators feeding into a grid. If this was a co-op, public utility or other form of monopoly, easily idled generators like wind or solar are added or removed as required to balance the grid without consideration for whether particular units are profitable. An idled unit is also not wearing out.
As it is, there are all sorts of additional rules added to ensure that individual sources aren’t too heavily penalized when their particular technology isn’t profitable, like perfect wind conditions making thermal plants operate at a loss. That puts rates up for everyone.
Sorta. Without good transmission and storage systems, producers will curtail their production and feel less inclined to invest in renewables since it’ll occasionally generate losses for them
That’s the problem with private generators feeding into a grid. If this was a co-op, public utility or other form of monopoly, easily idled generators like wind or solar are added or removed as required to balance the grid without consideration for whether particular units are profitable. An idled unit is also not wearing out.
As it is, there are all sorts of additional rules added to ensure that individual sources aren’t too heavily penalized when their particular technology isn’t profitable, like perfect wind conditions making thermal plants operate at a loss. That puts rates up for everyone.