Understanding Basics of the Power Market
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- Опубликовано: 11 сен 2024
- Get an overview of the North American energy markets including how the power grid works, and managing supply and demand.
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Niicely done. As an outsider first arriving on the scene, it would be nice to have an explanation of WHY each of these systems exists, and how it benefits society. Because my first reaction is to assume that this complex architecture exists in large part to provide opportunities for the financilization of the sector, opportunities to speculate. And that that might not ultimately be in the best interests of the majority of us. So I would like to see more on why the system was built this way.
Efficient markets are for the mutual benefit of both producers and consumers. Such systems offer higher liquidity and stability and thus smaller price fluctuations for everybody and can decrease the impact that single big entities can have on the market. This is what the majority of us benefits from, i.e. seeing a more fair price tag on the bill.
yeah markets literally are for the benefit of the majority. It's why china was a crap-hole, then adopted market reforms, then lifted 100's of millions out of poverty. The problem with markets is that you can have distortions created by actors (both private and government) - for example bad regulation or over-regulation, or the gov creating winners and losers via policy. Or if a monopoly forms or price fixing etc. Even OPEC do that with oil, acting as a cartel. But the goal is always for competitive and liquid markets, thus maximising efficiency.
It's the same WHY as to any other commodity, to offload and outsource risk to third parties.
Excellent comment. I agree, I am also suspicious as to why the complex electricity supply was deregulated and suspect that power traders (speculators) capture the majority of the efficiency gains (rent seeking).
@@pck7533 I appreciate the Adam Smith reminder. But I don't think it means that multiple markets (opportunities to buy/sell/speculate) on the same good/service means greater efficiency. Especially if that good/service has no substitute good...as is the case with electricity.
This is a very informative video that explains the basic concepts of electric power and transmission in the industry. Very nicely done.
This video is not about the whole power industry operating it's just about market component running of that industry
Has anyone seen an explanation of these markets as told from the perspective of a particular generation station? Or perhaps from the perspective of an electron itself haha. It's hard to get ones head around how the electricity actually arrives at my socket, how its price was determined, and who all made money along the way.
Here's some info from the perspective of one region (New England) at least on how the price is determined: 1vmdesign.com/wp-content/uploads/2015/11/RPT_GRC-CLF.pdf
Supply vs. demand and seasonal weather patterns all make up power market prices
Read the book The Grid, very in depth from the beginning of electricity to today
Really Good Content, Nice way of explanation.
LOVE this !
Hello Im going to work as a transmission operator, getting NERC RC certified but am very interested in the business side of things.
Great video - thanks guys!
still don't explain how you have 1 plant, 1 grid and a dozen electrical companies, how are they formed.?
at 3:06: "revenues are paid to the capacity providers regardeless of whether energy is produced or not". Is this only for deregulated market where private utilities are compensated almost no matter what to a certain extend, but is there a similar "waste of money" in regulated/public utility markets ?
Not a direct answer to your question but a clarification: would object to characterization of these payments as a 'waste of money' since the capacity providers serve an important function by ensuring the grid has the ability to meet demand if needed at a future date (even if they aren't 'switched on' to provide a flow of energy). Also, utilities (at least in northeast US) are still largely subject to regulation from the relevant state and regional bodies. 'Deregulation' primarily refers to the fact that distribution utilities were made to divest themselves of generation assets so that there would be competition between generators, resulting in lower costs for consumers.
Here's how ISO-New England describes the role of the capacity market: "The Forward Capacity Market (FCM) ensures that the New England power system will have sufficient resources to meet the future demand for electricity. Forward Capacity Auctions (FCAs) are held annually, three years in advance of the operating period. Resources compete in the auctions to obtain a commitment to supply capacity in exchange for a market-priced capacity payment. These payments help support the development of new resources. Capacity payments also help retain existing resources. For example, they incentivize investment in technology or practices that help ensure strong performance. They also serve as a stable revenue stream for resources that help meet peak demand but don’t run often the rest of the year."
Does the company that builds the power plant also build, and pay for, the means for transmission like power lines?
Not anymore. They used to when they were vertically integrated companies and sometimes monopolies such as SCE and PGE. But after deregulation they became separate entities with separate costs and consumer benefits.
fusion and solid state batteries
Why does our electric bill keep going up? With so many people getting solar and new housing tracts putting solar on all their houses, why does our bill keep rising?
Transmission and distribution lines, in addition to the traditional plants themselves, have operating and maintenance costs that last a long life (decades) ... and the insertion of new sources (which also use the T&D system) does not mean reducing these costs. On the contrary (that is why the bill does not drop, among other economic factors such as demand behavior). But this scenario may change with new sources, it is a matter of time for them to take their due value and avoid (along with our votes) huge reinvestments like those of the past in these technologies.
It's a very simple and exact explanatio
Greed, pure and simple, don't believe these deluded "economists" they've been indoctrinated to spread their fantasy understanding of economics, to serve the oligarchy
Fact water is energy and who owns water sights is a commander of the 7 seas.. Captain Jac told M.E.
Nuclear power is the future. It is in the past but more importantly it is the future. Cheap and reliable with controlled waste is the future. Say yes to nuclear power.
Fusion may be aswell. Interested to see how the future projects will be.
What gives cheaper electricity to people is the future. Anything else, I just don't give a single F.
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What
EWT save us
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By my dB CNN Yucatan b Lou CT
Supply and Demand? It is less manipulated than Silver? Haha