That’s Not Their Job. Possibility does not imply responsibility. One deal that consumers, government and utilities made in return for favorable regulatory proceedings like monopolies and franchise agreements was the responsibility to serve. That means that when you want to turn on the lights or hospitals run an X-ray machine, it works. Climate is making it more complex for grids to operate and an evolving generating portfolio means that complexity includes the dimension of time. But needing to count on your car to provide power to your house in the event of backup is insanity. While it sounds cool, you could have also plugged an extension cord into your combustion engine truck or run a generator as a backup. However, none of these scenarios create monetary value for the user which is what is supposed to happen if the grid ‘needs’ you to provide your own power. Grid operators could look at the EV increases on the grid and rightfully say, we will dispatch your vehicle and pay you X dollars to do so, if they ‘need’ those resources to keep the lights on. Of course they could simply say, if you reduce your homes load, we’ll pay you those same dollars but they do neither.
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Yann
Shell’s (Possible) Move. Interesting to read that the CEO of Shell is publicly considering a sale of the renewable power unit. I say interesting because Shell was founded on the basis of the energy transition from coal to oil. It was the British Navy’s decision to use oil as the fuel that not only created a major market for Shell but ultimately built the BP empire. Now that the transition from molecules to electrons is happening, it would make sense for the oil majors to lean in on the transformation and recognize that batteries are the new oil tankers and generation is the commodity feeding the growing energy demand across the world. Given how portfolio sales have priced recently (see Duke), now wouldn’t be the greatest time to make this move.
Arbitrage Value. Curtailment is an unfortunate side effect of renewable resource growth in the market. The sun shines when the sun shines and wind is similar. With curtailment comes inherent value of arbitrage because the delta between time X and time Y expands if time X (time of production) goes to 0.
Happy Birthday! To my oldest son, turning 13 today!
The Lender You Can Depend On. In a market that is full of uncertainty, you can rely on Dividend Finance to bring you white glove service to help you reach your long-term goals. Apply Here
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The Lender You Can Depend On. In a market that is full of uncertainty, you can rely on Dividend Finance to bring you white glove service to help you reach your long-term goals. Apply Here
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Texas Breaks Records. Hard to fathom that ERCOT is forecasting peak demand of over 82GW several times in the next week. Not just for this individual moment with less than 10% capacity reserve margin but for what that means in the future. This week I wrote about the global temperatures causing family members across Europe to install air conditioners in their homes, when they never had to in the past. Along the electrification that consumers are going through with appliances and electric vehicles, the grid has the added strain of the real energy transition. As a society we will use more and more energy, that's the natural course of progress. The energy transition is electrification, shifting more of the energy from molecules to electrons and the grid has to be resilient and therefore intelligent enough to let the lights stay on every time the consumer wants or more critical applications like hospitals require. (originally posted on my Linkedin)
The Lender You Can Depend On. In a market that is full of uncertainty, you can rely on Dividend Finance to bring you white glove service to help you reach your long-term goals. Apply Here
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Yann