Thread by @yestiseye

@JohnMartinIT @simonahac @dmichie66 @ned2au @DamienReardon1 @Daniel_W_See @BrendanCarton @andypbray @LyleShelton Wholesale works just fine, there are some tweaks (like valuing demand response) that are worthwhile. People just don't like the brutal consequences of an efficient mechanism like merit order pricing. Here the free market part works; it doesn't work across the whole sector. 1/

@JohnMartinIT @simonahac @dmichie66 @ned2au @DamienReardon1 @Daniel_W_See @BrendanCarton @andypbray @LyleShelton So for example, if we'd have been more prescriptive about where wind farms go under the RET, they wouldn't be so strongly correlated in output. But we got the world's test laboratory (South Australia) so it's not all bad.🤨
Point is it's a hybrid market, not 0 or 100% free market

@JohnMartinIT @simonahac @dmichie66 @ned2au @DamienReardon1 @Daniel_W_See @BrendanCarton @andypbray @LyleShelton On retail: no comment, though probably best for everyone ultimately if a decent % go bankrupt.

Now Demand Response: you should investigate @PooledEnergy …they have the right idea. Even then though it is only one limited part of a bigger solution. 3/

@JohnMartinIT @simonahac @dmichie66 @ned2au @DamienReardon1 @Daniel_W_See @BrendanCarton @andypbray @LyleShelton @PooledEnergy I have some useful diagrams on the computer, will go fetch them now. 4/

@JohnMartinIT @simonahac @dmichie66 @ned2au @DamienReardon1 @Daniel_W_See @BrendanCarton @andypbray @LyleShelton @PooledEnergy So this (hopefully) demonstrates where demand response is truly useful: clipping the peak of either the residual or full load duration curve. Here I've shown the effect on the residual (which is total demand less renewable output). Also included is the actual curves, where… 5/6

@JohnMartinIT @simonahac @dmichie66 @ned2au @DamienReardon1 @Daniel_W_See @BrendanCarton @andypbray @LyleShelton @PooledEnergy …'adjusted' accounts for gas being burnt to provide system inertia locally.
Note these curves are not one-to-one aligned, each is reordered in descending value. If I keep total & residual data together all you see is the stochastic nature of renewables. Not that useful. 6/6