20 Oct '11, 10pm

Wholesale Price of Electricity Drops to $0.00 in Texas, Due to Wind Energy

Wholesale Price of Electricity Drops to $0.00 in Texas, Due to Wind Energy

According to the Electric Reliability Council of Texas, demand for the state’s grid dipped below 25,000 megawatts. Compare that to the highest demand ever, on the afternoon of August 3, at 68,379 megawatts. Power generators bid their prices into the wholesale market. ERCOT calls on power plants to turn on as demand rises during the course of the day, calling on the lowest bids first, and then higher bids. Wind gets dispatched first, because it is the cheapest power generation to operate. So when the wind kicks up, and turbines begin turning, some higher-priced generators may be told to turn off. On a night when demand is low and wind is high, even some coal and nuclear power units that typically run constantly aren’t needed. It can be difficult to turn those plants back on when they are entirely off, so the owners will make very low bids – even zero — into the wholesale ma...

Full article: http://cleantechnica.com/2011/10/20/wholesale-price-of-el...

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