Inevitable
Decoding Coal Dispatch with RMI
Aug 5, 2024
Joe Daniel, a Principal on the Carbon-Free Electricity Team at RMI, dives into the intricate world of coal's impact on the US electric grid. He explains the concept of non-economic dispatch, where coal plants operate despite being less cost-effective, disrupting energy efficiency. The discussion highlights how information asymmetry hinders renewables while Joe introduces tools like RMI's Economic Dispatch Hub aimed at facilitating a fair transition to cleaner energy. Insights on coal's declining role amidst rising renewables make for an engaging and enlightening conversation.
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Quick takeaways
- The non-economic dispatch of coal disrupts the merit order of electricity generation, adversely impacting the economic viability of renewable energy sources.
- Addressing structural issues within utility incentives and implementing favorable policies is essential for transitioning to a more sustainable and competitive energy market.
Deep dives
Understanding Non-Economic Dispatch of Coal
The concept of non-economic dispatch of coal refers to scenarios where coal-fired power plants supply electricity despite being a less cost-effective option compared to other sources. This phenomenon disrupts the merit order, which is designed to prioritize the cheapest electricity generation resources available. Joe Daniel emphasizes that this is a significant issue that directly affects the operational efficiency of the electric grid and the economic viability of renewables, which are generally more affordable than coal. By analyzing how often coal plants are dispatched despite being uneconomic, stakeholders can better understand the impact of outdated operational practices on current market dynamics.
