- Mar 3, 2021 10:37 pm GMT
The Texas electricity market fiasco has resulted in a blame game roulette. Here's another one to add to the mix. The author argues that skewed incentives and the natural gas market's opaque pricing systems are to blame for the shortfall in natural gas supply during the Texas blackouts. It is a valid argument but not a particularly novel one, especially when you consider that pricing for most fossil fuel sources (including oil) is set based on OTC and non-transparent trades that occurs between private actors. (I am not aware of the method to calculate renewable energy prices). This malaise is present not only in the energy industry but also in stock trading and much of the finance industry. In fact, I'd argue that even ERCOT's markets are not transparent since it is difficult to identify actors operating in the market at any given time and, therefore, their incentives.
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