• UnderpantsWeevil@lemmy.world
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    2 months ago

    Gas power operates as a cartel to set energy prices during periods of shortage. Plants will collude to withhold energy until a sufficiently high auction rate for energy is reached.

    Solar plants can’t efficiently hold back their power in order to participate in the price gouging. All they can do is coast on the wave of high prices that nat gas producers create. This reduces instances of price spikes (particularly since peak usage happens in the afternoon, when solar power also peaks) which hurts gas cartels disproportionately.