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Big Synchronous Generators, Popular Fallacies, and Unpopular Opinions
Public Power Underground
Capacity and Energy: Two Distinct Forces… or not?
The discussion challenges the common perception that energy pricing inadequately reflects capacity value and dispatchability. An analysis of market dynamics reveals that renewable sources like wind and solar often command lower captured prices due to their intermittent nature, while dispatchable resources, such as storage, effectively respond to price fluctuations. This disparity underscores the interconnectedness of energy prices and capacity, suggesting that rather than viewing them as separate entities, they should be understood as two aspects of a singular issue. The necessity for stability amidst price volatility highlights the importance of employing financial instruments to mitigate risks rather than isolating capacity from energy considerations.
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