- Nov 4, 2020 5:25 pm GMT
We see cracks in the wholesale market approach to pricing electricty. Traditional approaches are resulting in more frequent negative LMP results, which are simply unsustainable. We need to find a better way to value electricity. This message came through loud and clear during a meeting today discussing the future of Irelands Electricity Markets hosted by Cornwall Insight and within the article linked below. There was some talk of possibly setting reference prices, but there is no clear answer on how to fix the existing wholesale market pricing problems. The problems with Wholesale Capacity and Energy markets are symptoms of the same problem; how to value electricity (both capacity and energy) in a world dominated by an abundance of electricty coming from increasing amounts of renewable resources, which have no inherent variable fuel charges that compete with other generators that rely on fuel to generate electricity. This is a big issue today and it's getting bigger, as the Cornwall Insight presentation indicated.