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cowboy_henk 3 days ago

* only in the middle of the day, when the real price of that electricity may be negative, so it's still sold at a profit

ch4s3 3 days ago | parent | next [-]

This seems like a great way to encourage the behavior you want, which is conserving when energy is emitting more carbon by shifting consumption. Do your laundry, charge a car, charge a whole house batter, run laundry, crank the AC, run your own aluminum smelter, whatever.

RobinL 3 days ago | parent | next [-]

In the UK, you can go on an agile tariff that does exactly this. I'm on one.

It's quite fun (and educational) with the kids to work out when to put the car on to charge, when to run the dryer etc, looking at the few days ahead forecasts.

Last month, we paid 11p per kWh on average, which is less than half what you'd pay on a standard tariff, and it's nice to be doing something good for the environment too. It's particularly satisfying to charge up the car when tariffs go negative.

Here's today's rates (actuals): https://agilebuddy.uk/latest/agile

Here's a forecast: https://prices.fly.dev/A/

ch4s3 3 days ago | parent | next [-]

> Last month, we paid 11p per kWh on average, which is less than half what you'd pay on a standard tariff

That's pretty rough. That should be about 14¢ per kWh which only a hair less than the median price per kWh in the US (~17¢).

RobinL 3 days ago | parent [-]

Yeah - unfortunately the UK has some of the highest electricity prices in Europe.

Almost all households are on fixed tariffs, typically about 26p/kwh at the moment.

RobinL 18 hours ago | parent | next [-]

FWIW, here's a chart showing current prices across developed countries, showing UK is worst! https://fullfact.org/economy/uk-world-electricity-prices/

adammarples 3 days ago | parent | prev [-]

And the worst part is the standing charge keeps going up

hexbin010 3 days ago | parent [-]

What, do you expect the energy companies to use their own money to invest in infrastructure for net zero and the AI boom? Oops too late it's been paid as dividends. No, just create a levy and make the public be unwilling investors except without getting the shares nor dividends

Don't forget it's also a tax for bailing out the failed energy companies

hexbin010 3 days ago | parent | prev [-]

> It's quite fun (and educational) with the kids to work out when to put the car on to charge, when to run the dryer etc, looking at the few days ahead forecasts.

As if we aren't busy enough. I see this as just yet _another_ job the government/business is making us do instead of them.

Is it too much to ask for my government to provide sensibly and simply priced energy so we can get on with our day, working, studying, raising kids etc?

IMO this is just setting us up for insane surge pricing for those people who don't do the good citizen thing of becoming nocturnal

RobinL 3 days ago | parent [-]

I think it's best to view this from an economics point of view - in a nutshell price signals are usually the most powerful way to create behavioural change; in this case, we want people to shift demand away from peak times. Nobody is being forced to, they just have to pay more for the convenience of not bothering.

> IMO this is just setting us up for insane surge pricing for those people who don't do the good citizen thing of becoming nocturnal

It actually costs a lot more to produce marginal energy at peak times, the cost just reflects the cost of production. It doesn't seem unreasonable for me for the consumer to bear the cost, and also get the benfit if they choose to put their car to charge overnight rather than at peak time.

This also has a nice secondary benefit: anyone on agile tariffs who shifts demand away from peak time actually benefits those who don't want to bother, because the peak price/cost goes down, and so the overall average price of electricity goes down.

> I see this as just yet _another_ job the government/business is making us do instead of them

In most other market, people are expected to respond to price incentives. When local apples are cheap relative to imported cherries, people don't complain that government/business is making us do a job to push demand in the direction of apples.

> Is it too much to ask for my government to provide sensibly and simply priced energy so we can get on with our day, working, studying, raising kids etc?

The free market price _is_ the agile price. The government intervention is actually in the direction of fixing prices (e.g. by the energy price cap, which is sometimes below the free market price at peak times). In general, markets do not work very well when the government fixes the market

When you let the market clear and send out price signals, markets almost always become more efficient (which means that consumers benefit overall)

hexbin010 3 days ago | parent [-]

> we want people to shift demand away from peak times

Because governments have let energy companies fail to invest in necessary infrastructure for decades.

And who is the "we"? Definitely not me

I think a much larger conversation needs to happen about people's schedules, commitments and whether it's fair to say those who have less time and less flexibility due to work, children etc are somehow actively choosing to not be a good eco citizen. It's incredibly unfair.

I'd rather go back to root causes and re-evaluate private companies failing to provide the necessary infrastructure

oezi 3 days ago | parent [-]

> Because governments have let energy companies fail to invest in necessary infrastructure for decades.

Well, regulating oligopolies isn't fun and it isn't popular with voters.

nandomrumber 2 days ago | parent | prev [-]

In Australia, residential premises are prohibited from running aluminium smelters.

Dunno about where you live.

If you’re going to throw capital at large metal refinery infrastructure, you want it running 24/7, or have guaranteed subsidies from local, state, and federal governments.

And remember that subsidies are paid from the public purse.

notatoad 3 days ago | parent | prev | next [-]

still sounds like an incredible way to incentivize consumers to buy small-scale storage. if i knew i could get free electricity for an hour or two each day (or even each week) it'd be a very easy choice to drop ~$1000 on a home battery.

loeg 3 days ago | parent [-]

You'd spend $1000 to save $0.20 on electricity every day?

testing22321 3 days ago | parent | next [-]

The average price of power in Australia is 34 cents per kWh. The average Aussie spends A LOT more than $0.20 per day.

loeg 3 days ago | parent [-]

GP isn't talking about a full day's use, but "free electricity for an hour or two each day (or even each week)."

testing22321 3 days ago | parent | next [-]

The whole reason to spend the money on the battery is so you can use the free power for a lot longer than an hour or two!

jay_kyburz 3 days ago | parent | prev [-]

You'll want to draw as much power as possible while its free, and use it duing peak times.

byefruit 3 days ago | parent | prev | next [-]

7.3% return, not bad. As battery prices drop it will get even better.

marcosdumay 3 days ago | parent [-]

It's not 7.3% return rate. There's some depreciation you need to add there.

WheatMillington 3 days ago | parent [-]

If you're going to depreciate the battery then your return will be substantially greater than 7.3%. You can't use BOTH the capex AND the depreciation as your denominator, choose one.

Rebelgecko 3 days ago | parent | prev [-]

Where I live, $1000 would get you about 3kWh of battery power, which would pay for itself in a couple years

gpm 3 days ago | parent | prev | next [-]

The real price of solar electricity is never negative. Unlike something like oil wells (which really have driven the price of oil negative) you can just turn solar off.

Prices have gone negative because of things like subsidies - which in the short term is a good thing IMHO - it subsidizes industries developing systems to make use of that free (but not negative cost) energy...

2 days ago | parent | next [-]
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marcosdumay 3 days ago | parent | prev [-]

> you can just turn solar off

Somebody has to go and turn it off, and having this person available overwhelms all of your operational costs.

Or alternatively, you need the infrastructure to do it automatically, what is currently expensive. (But there aren't intrinsic reasons for that being expensive, it's probably due to lack of scale.)

If it's just slightly negative, or just rarely so, it's not worth it.

testing22321 3 days ago | parent | next [-]

Basically every home in Australia, and certainly every home and business solar setup, has a smart meter that is grid connected and can be remotely shut down when needed. Or they even just limit the amount that can feedback to the grid if required I.e you’re making 8kw of solar, but it will only let you feed in 2 if the system determines that.

There is not “person” turning things on and off.

viraptor 3 days ago | parent [-]

Since this year, you're also forced to have the remote kill switch on the new solar installations at home.

quickthrowman 3 days ago | parent | prev | next [-]

Commercial solar fields are entirely automated, nobody is going to the site to throw a disconnect switch lol. For sites without hardwire internet, there’s 4G or satellite connectivity. A 4G cell comm module is a few hundred dollars. Adding in remote operations control is probably a tiny fraction of a percent of a solar field project.

beAbU 2 days ago | parent | prev [-]

Also, turning off solar (known as curtailing) is just dumb. It's throwing away "free" electricity. The UK and Ireland is doing the same by turning off their wind turbines every now and then, and it's frustrating.

By making the price go negative, you are creating the market incentives for someone to do something about it: households will invest in BES systems to suck up all that free electricity to use during peak times, and some industrious entrepreneurs might even be convinced to do it on a very large scale to start arbitraging on the price fluctuations.

You don't even need the price to go negative to have a BESS buffer make financial sense.

willvarfar 3 days ago | parent | prev | next [-]

Yes the article talks about consumers scheduling things like washing machines during the day, or even filling up a battery.

bee_rider 3 days ago | parent | next [-]

This is the “smart grid” idea, right? We just haven’t fully explored it yet.

Something I firmly believe is that there’s a ton of low hanging fruit for timing our energy use better. It is just hidden by the desire to present a uniform energy price.

Like why not run our water heaters when power is cheap? Then if that became a thing, we might even be interested in larger water heater tanks. Batteries cost per volume, you only pay for the surface are of a metal tank!

beAbU 2 days ago | parent | next [-]

I'm on a time-of-use tariff, with a special "EV" slot between 02h and 05h. My car is programmed to only charge during this time unless I tell it otherwise.

The price difference is significant: About €0.08/kwh compared to the €0.2 - €0.4 I'd be paying during normal day/peak times.

This has made my day-to-day driving basically free, less than a euro per 100km (€0.08/kwh * 7kwh/100km)

I tried doing the same thing for other large(ish) loads in the house, dishwasher, washer & dryer, but the cost benefit was really really small when compared to the big savings from my EV charging.

I heat my water using an oil burning boiler, but if I had an electric water heater, it would make total sense to run that during the "EV" hours as well. If I could, I would then also invest in more capacity, and set the thermostat higher to have essentially a hot water battery that could last me the whole day.

At my old house I had an overspecced solar system, and I set it up to dump the remaining available solar energy after the batteries are done charging into my hot water heater. The thermostat was set to 75C or something, super hot. I'd then have piping hot water for most of the day, and maybe needed a small electric boost in the mornings, especially in the winter. Another 200L or so would have resulted in me not needing any grid power to heat up enough hot water for the household.

3 days ago | parent | prev | next [-]
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naIak 3 days ago | parent | prev | next [-]

Power at peak times is cheap because load is distributed throughout the day. If everybody ran their heaters at the same time, power wouldn’t be so cheap and we’d reach the same situation we’re in.

bryanlarsen 3 days ago | parent | next [-]

Power at peak times is cheap because it's the time of highest insolation.

naIak 3 days ago | parent [-]

You’re missing the other side of the equation.

tstrimple 2 days ago | parent | prev | next [-]

Think of being able to set a price on Amazon Spot instances where it's low enough to charge your home battery for "free". When the price is right, you recharge your batteries as much as possible. When the price falls outside the range, you leverage your battery to offset the higher electricity prices. This would be part of the "smart" in "smart grids".

bee_rider 3 days ago | parent | prev [-]

If power wasn’t cheaper, there’d be no incentive to run our heaters at the same time. I’d expect the market to work this out, and price power down during unexpected over-supply, rewarding nimble workloads. Then there arrives a reward for being nimble, which is something we should incentivize I think.

ZeroGravitas 3 days ago | parent | prev [-]

Australia has some cutting edge tech that actually sends control signals through the electric wires.

It rolled this out in 1953:

https://en.wikipedia.org/wiki/Zellweger_off-peak

It let coal plants run more efficiently and people could heat their water overnight.

Somewhat bafflingly they seem to have somewhat failed this same task with the solar rollout.

Presumably 21st century capitalism got in the way of the mid 20th century engineering.

mikeyouse 3 days ago | parent | prev | next [-]

They could also run their AC to below where their normal set point would be to “bank” some of the free electricity. I wonder if we’ll start seeing other more passive energy sinks… if you lived in a hot area and could rely on several hours of free electricity each day, it enables all sorts of interesting options like turning on a secondary cooling system to “charge” a large boulder or hunk of metal that you could then pass air over to cool your house when energy is expensive again.

ch4s3 3 days ago | parent [-]

If you built homes with a lot of thermal mass, you could cool the internal thermal mass when energy is $0 and have that mass absorb heat the rest of the day. This is sort of the principle a lot of traditional architecture uses where evaporation, wind over a courtyard, or nighttime lows cool thick walls.

mikeyouse 3 days ago | parent | next [-]

Yep, our house was built like this but in a cooler climate (large windows facing south with the all of the stone flooring and surfaces getting direct sunlight in the winter). But since most houses in the Aussie suburbs aren’t really optimized for this, you’d have to retrofit many million houses to take full advantage. Opens up some interesting opportunities for sure.

ch4s3 3 days ago | parent [-]

Yeah, for sure. Building for 0 carbon AC and electric resistive heating will probably look a little different.

bobmcnamara 3 days ago | parent | prev [-]

This is how the cold storage caves work in the Midwest. They run their ammonia loops harder in the off hours and let the cave mass handle it(provided a large enough area is kept frozen, otherwise thermal expansion cycling can cause a carve out in the ceiling).

BtM909 3 days ago | parent | prev [-]

More countries where there's a surplus, are advising people to charge or use electricity during the day.

senectus1 2 days ago | parent | prev [-]

and only in a few states.

My home state of WA is not a part of the same power netwrok.