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danans 7 months ago

> I still don't quite understand the pricing during emergencies or shortages, though.

Unpredictable supply shortages (almost always from emergency shutoffs at fossil plants) happen on the grid all the time. To deal with this, grid operators contract with "operating reserves", which are sources of supply that stay ready to make up for a supply shortfall. Often this takes the form of running natural gas turbines (hence the subcategory called "spinning" reserves).

This is very expensive electricity because usually you must pay for the fuel spent while the reserve isn't being used also.

As more battery storage is added to the grid, this service will be increasingly provided by batteries instead of natural gas turbines.

It can also be provided by voluntary (and compensated) demand curtailment programs.

None of this can make up for a grid that is under-invested in resilience (in exchange in the short term for extremely low electricity prices), which is basically what happened in Texas.

pfdietz 7 months ago | parent [-]

The problem in Texas was exacerbated by underinvestment in efficiency. Simply insulating homes more effectively would have allowed more resilience. A home is a kind of thermal battery, allowing load shifting due to its thermal inertia. The more insulation, the longer the thermal time constant, and the longer load can be shifted.

danans 7 months ago | parent [-]

While I agree that houses should be better insulated (I built and live in a high performance home that uses a fraction of the energy of a typical home), the reality of Texas large and generally poorly constructed housing stock means it's even more important than that the grid is available.

In the near term, it's much cheaper to do that than to upgrade all the houses' envelopes (again, I'm a huge advocate of home efficiency).