Clean energy mess

I came across this interesting article stating that on June 16th, German electricity market paid (not charged) its user €100 per MW to consume electricity.

My immediate reaction: Bangalore, the home of Electronic City, has regular power cuts because there are not enough electrons to meet the demand. While people in Europe has surplus electricity that the grid has become unstable and they want everybody to consume electricity, stop pumping more power and help it become stable. Irony!!!!

However on further read, I realized how messy & disruptive clean energy can be for the existing power distribution eco-system.

  1. Predictability: wind-power is completely at the mercy of the nature. Solar power also cannot be relied on everyday. However humans are creature of habits and they are rarely wait for sun to shine before they switch on their toaster. Hence creating the situation like Germany.
  2. Peak power load premium: Day time is when the power needs are maximum and with the installations of solar power. Solar power is generated only at daytime and reducing the premium that the power companies could charge (and hurting their revenue models)
  3. Variability of load: coal fired plants are profitable only they operate at a fixed load/output 24X7. The renewable power is preventing them from this hence power companies are incurring a loss.
  4. Traditional power plants usually incur losses at the night time when both the power consumption

Today the renewable clean constitutes a minor share but going forward more wind mills & solar panels will be erected. If these issues are not taken care of then the grids will grow unstable & power prices erratic.

 

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