RE oversupply implies discounting RE
power. Whatever distortions that are applied will have to be paid for, by
customers probably, because stockholders are rarely penalized.

It is also possible that RE power is actually less costly, then the penalty
gets paid by the customers of the non-RE generators/aggregaters.

Somebody pays that is certain. Plenty of RE is long term less costly to
produce than, nukes and fossils. A well built and operated solar facility
can be very competitive. But again there are often subsidies baked in that
have enduring but hard to see effects.

I'm not knowledgeable about wind. Presumably they can compete as well, or
the difference is being made up in tax breaks, credits etc.

My main point is someone does pay, even if a facility is run at less than
optimal output. It is often hidden.


On Tue, Aug 31, 2021, 10:50 PM EVDL Administrator via EV <ev@lists.evdl.org>
wrote:

> On 31 Aug 2021 at 21:55, Michael Ross via EV wrote:
>
> > My first guess is CA has distorted the market with subsidies, etc. It is
> > likely a pendulum swing, the asking price will have to come down. Supply
> > greater than demand.  Some one is going to get some electrons below cost.
>
> Again I'm speaking out of relative ignorance, not having exhaustively
> researched the California energy situation.  However one would think that
> the utilities aren't apt to buy more RE than they're required to,
> especially
> if it costs more than brown energy.
>
> So one solution to RE oversupply would be for the California legislature
> to
> generate demand by raising the required percentage of RE in the grid, no?
>
> And, again, using that excess RE to charge EVs should be a winner all
> round.
>
> However, I'm throwing darts in the dark here, so it'd be great to hear
> from
> someone more familiar with the situation.
>
> David Roden, EVDL moderator & general lackey
>
> To reach me, don't reply to this message; I won't get it.  Use my
> offlist address here : http://evdl.org/help/index.html#supt
>
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>
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