cross-posted from: https://discuss.tchncs.de/post/127188
Have you ever heard of “net metering”?
It means that if your electric company gives you net metering, you can connect a generator or solar panels to your house and sell excess electricity back to the utility at the same price that they bill you for.
Sounds great right?
No, actually its a major problem for the utility.
The reason is that power plants take a significant amount of time to throttle up or down. If everyone in the area has solar power feeding back into the power grid, sudden changes in sunlight can cause major fluctuations and destabilize the power grid.
So what is the solution?
Dynamic pricing. Some areas already do this. How it works is that the price you pay (or receive) for electricity depends on the conditions on the power grid at the moment, updating as fast as possible.
When the grid has a deficit of power at the moment (maybe a power plant is struggling to throttle up to meet demand) the price goes way up.
If the grid has a surplus power at the moment, the price goes down, even going negative.(meaning you must pay to dump your power into the grid, or be paid for consuming excess power)
What this does is create an economic incentive for people to invest in equipment that actually stabilizes and supports the power grid.
For example if you have an electric car charging in your garage, it knows the price of power, and it can start charging faster when the price drops, or it can dump its battery power back into the grid when the price is high. The battery in your car is actually earning money as it sits idle!
Same with solar panels. Even if the installation doesn’t have batteries, the system can choose to stop selling power to the grid when it isn’t wanted.
Likewise, your heated pool can choose to absorb electricity when the price is low.
This is the future of the renewable energy economy in my opinion.
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It should be on the utility to handle the swings in load and generation. If it takes some time for your plant to start up, why isn’t there some sort of short term storage? Dynamic pricing causes solar to have a very low return and will cause us to continue to rely on fossil fuels longer. Utilities handle swings in load normally. A great example is there’s a massive peak of electric use in England during commerical breaks on the BBC. Everyone has gotten up to put the kettle on…
And responding to those swings is a major challenge and expense for the utility
Octopus energy in the UK https://octopus.energy/octopus-smart-tariffs/ has a variety of different “smart” tariffs on offer from raw market price (Agile) to EV specific tariffs. I’ve been with them for years as they’re one of the few energy companies here that seem to have a clue and have been consistently cheaper than most of the competition. We do seem to have a much better energy market in the UK compared to the US, but the system is still pretty bad. (see the whole debacle about energy prices during the winter)
I was in an odd situation last year of being on a cheap fixed import rate, but a market rate for export, and I was at one point being paid £1/kwh to export our solar and paying 26p for import. You can even be paid to use energy occasionally with the market rate tariff when the cost of energy flips negative.
We’ve got a Powerwall too and can charge the battery at night and return it to the grid during peak hours. I don’t do that at the moment as the rates aren’t worth it for the tariff we’re on (Flux). Instead while it’s sunny we can just remain off grid and export our excess using the battery to cover the evening.
I’d love for a way to drive the powerwall charge/discharge behaviour with an API, it would let me make the powerwall charge up when energy prices were lowest in any given 24h window and discharge our surplus when grid prices were at their highest. Tesla had a plan to do this (managed by octopus) but they shut it down earlier in the year, probably due to crazy winter we just had… I’d still prefer some control over it though as I have a better idea of what our usage could be if I want to intervene.
Its cool that you have those options
I understand the need for better balancing the power generation and usage and it will be even worse as the unpredictable renewable sources keep increasing.
Dynamic pricing is just one solution and I would support it when home batteries become more affordable and sustainable. Grid scale energy storage has more benefits than each home having individual batteries while the production scales up.
Another approach would be dynamic load adjustments. The concept of “packetized” energy in general is very appealing but it would need standardization and utility support.
dynamic pricing will accelerate the development of both large and small scale energy storage systems. Its a capitalist/free market solution that incentivizes everyone (everyone from states to power plant operators to local governments to individuals) to contribute to improving renewable energy infrastructure.
