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pjc50 3 months ago

Everyone adapts to the single most expensive uneven form of local pricing: property prices.

I think there's a very strong case to link grid and generation capacity improvements to local pricing in the effective area, even if it doesn't end up being through the market. Make the link explicit: "if this pylon project is built, we will give everyone in the receiving county 1p/unit off their bill for five years."

swamp_donkey 3 months ago | parent | next [-]

“Nodal pricing” exists in several markets but isn’t often used. One example is in Ontario the nodal price in Thunder Bay was always very low since industry there had collapsed but there were still three coal fired power plants. They could bid a low price so it would be accepted, and due to low local demand the supply and demand solved for a low price in Thunder Bay, but due to transmission constraints all of the bidders could not generate what they bid, so they would have to be constrained off. I can’t recall if they got a payment for the power they weren’t able to generate.

tlb 3 months ago | parent | prev [-]

People only have to think about property pricing every several years, when they move. Electricity spot prices change by the minute. So the mental burden is quite different.