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nawitus

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http://www.linkedin.com/pub/panu-horsmalahti/43/369/52a

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I'm not expert in the system in California, but usually consumers are already paying the average spot price (plus some significant margin, which takes into consideration the demand profile of the consumer). Switching to spot pricing would not raise rates, and if consumer would adapt slightly to spot prices the average rate would actually decrease.

A house will not cool down immediately. It will cool down rather slowly in most cases (or at least if it's well built). There are also various ways to store thermal energy or use alternative, non-electric heat sources.

If the price goes up 10000x there will be blackouts in any case regardless if spot pricing is used or not. Spot pricing will _reduce_ blackouts.

The reasoning is that it incentives electricity producers to offer max amount of electricity at low prices without speculating how to maximize profit (as their sell offer will practically speaking have zero effect on the spot price). Nuclear plants, wind power, solar can just offer to sell at everything at around 0c/kWh.

It's claimed that another type of market would cause companies to speculate with their sell offers and thus generate less electricity. It would be interesting to see how this kind of market would work in reality, though.

You just need nuclear and existing hydropower, which boils down to you just need nuclear. It's not politically probable or realistic though, but we really just need nuclear technically speaking.

Nuclear can also follow loads, but there's no economical need to build them to do that (in almost any market).

This is becoming quite common in Finland (thanks to insanely high spot prices of electricity). Shelly is usually used to do the automation. Note that the water is not heated "hotter than necessary" but rather water is heated up to the max amount when the price is cheap.

Traditionally water heaters were only on at night.