13 Feb '18, 3pm

Time of use electricity pricing: good for bringing even more wind online

Time of use electricity pricing: good for bringing even more wind online

The age of wind power has arrived. As technology has advanced and the industry has matured, the cost of wind generation has plummeted, to the point where wind is now the lowest-cost resource in the upper Midwest. But, as more wind has been added, market prices have fallen, especially during overnight hours with lower electricity demand. In a previous post , we argued time-of-use pricing will boost wind development by increasing demand for electricity during times of high wind generation. In this post, we walk through a simplified electricity market to show how this works. Electricity generation throughout the day The chart to the right shows how our electricity generation mix changes throughout the day. Wind production is typically highest overnight, when electricity demand is lowest. So, in the early morning hours, electricity is “cleaner,” as most of our electricity come...

Full article: https://fresh-energy.org/time-of-use-electricity-pricing-...

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