A key component to me is using all the domestic batteries installed by PV owners to help balance the grid in winter. Even if you are on a dynamic tarrif like Tibber the high fees per kWh (and absence of domestic dynamic export tariffs) mean that households optimize for their domestic consumption rather than the grid.
I'm thinking something like Octopus agile where fees per kWh are only added to spot market prices in times of grid congestion could be very benefitial
Indeed. That's one of the key uses of smart meters. It's mentioned briefly in our text above but agree that it might have been good to emphasize it more.
some good suggestions here - but some sound a bit too much lke locational pricing to me in a way that shows up locational pricing's faults. You say give higher CfD prices in the South - but that's precisely where there are less wind power resources, at least in terms of ability to get planning consent. This illustrates the weakness of locational pricing with renewable energy and threatens to reduce oppotunities for renewable energy developers to set up in places where it is realsitic to get schemes going. So we end up with less renewable energy. Not good.
David, I hear you, but we are at a point where we should not build more renewables in certain places, even if the resource is better than elsewhere, unless we can actually use that energy. Whether it's storage, transmission or new demand, you need to improve the local balance otherwise the additional renewable electricity will simply be curtailed and wasted.
We need renewables where it can be used, and locational signals are a vital part of that, giving incentives both to the demand side (including storage), and the supply side.
as you say we need to improve the local balance with storage transmission or new demand - so we should focus on incentives for more storage, build new demand and improve demand flexibility, then we can use the renewable energy that would otherwise be constrained. That's a much better solution than deploying locational pricing that will mean there's no renewable energy in a lot of places, and much less renewable energy overall.
Locational pricing will incentivize storage and demand - and lead to better prices at that node once it happens. Then renewables can be profitable again, because they can be used. Again, there's no point deploying renewables if they can't be used. There needs to be real incentives for that use to grow - locational prices will encourage local demand, storage and transmission.
sorry to labour thenpoint, but if there's little or no renewable energy in am 'low price' locational zone then there won't be demand for storage services etc because there won't be much renewable energy. That's the point.
and the high price zones like Bavaria where it is difficult to get planning consent for windfarms anyway there won't be much renewable energy for resource reasons. It's lose lose for renewables under locational pricing. Maybe it's not so bad in some countries compared to others, but know from the UK that the results will be uncertainty folowed by slump
A key component to me is using all the domestic batteries installed by PV owners to help balance the grid in winter. Even if you are on a dynamic tarrif like Tibber the high fees per kWh (and absence of domestic dynamic export tariffs) mean that households optimize for their domestic consumption rather than the grid.
I'm thinking something like Octopus agile where fees per kWh are only added to spot market prices in times of grid congestion could be very benefitial
Indeed. That's one of the key uses of smart meters. It's mentioned briefly in our text above but agree that it might have been good to emphasize it more.
some good suggestions here - but some sound a bit too much lke locational pricing to me in a way that shows up locational pricing's faults. You say give higher CfD prices in the South - but that's precisely where there are less wind power resources, at least in terms of ability to get planning consent. This illustrates the weakness of locational pricing with renewable energy and threatens to reduce oppotunities for renewable energy developers to set up in places where it is realsitic to get schemes going. So we end up with less renewable energy. Not good.
David, I hear you, but we are at a point where we should not build more renewables in certain places, even if the resource is better than elsewhere, unless we can actually use that energy. Whether it's storage, transmission or new demand, you need to improve the local balance otherwise the additional renewable electricity will simply be curtailed and wasted.
We need renewables where it can be used, and locational signals are a vital part of that, giving incentives both to the demand side (including storage), and the supply side.
as you say we need to improve the local balance with storage transmission or new demand - so we should focus on incentives for more storage, build new demand and improve demand flexibility, then we can use the renewable energy that would otherwise be constrained. That's a much better solution than deploying locational pricing that will mean there's no renewable energy in a lot of places, and much less renewable energy overall.
Locational pricing will incentivize storage and demand - and lead to better prices at that node once it happens. Then renewables can be profitable again, because they can be used. Again, there's no point deploying renewables if they can't be used. There needs to be real incentives for that use to grow - locational prices will encourage local demand, storage and transmission.
sorry to labour thenpoint, but if there's little or no renewable energy in am 'low price' locational zone then there won't be demand for storage services etc because there won't be much renewable energy. That's the point.
and the high price zones like Bavaria where it is difficult to get planning consent for windfarms anyway there won't be much renewable energy for resource reasons. It's lose lose for renewables under locational pricing. Maybe it's not so bad in some countries compared to others, but know from the UK that the results will be uncertainty folowed by slump
Very beatiful ❤️