It seems like we basically have a situation where supply is low but the marginal units are very valuable (as they are replacing small gensets). If so, is the underlying issue just that prices are too low? If electricity prices were allowed to rise to the market-clearing rate (ideally using the sort of market mechanisms used in PJM or ERCOT, but alternatively just by using PPAs) supply would increase, and there might be some degree of demand efficiency improvements. The government shouldn’t need to build generation capacity—this is firmly within the expertise of the private sector.
Thanks for sharing, interesting article.
It seems like we basically have a situation where supply is low but the marginal units are very valuable (as they are replacing small gensets). If so, is the underlying issue just that prices are too low? If electricity prices were allowed to rise to the market-clearing rate (ideally using the sort of market mechanisms used in PJM or ERCOT, but alternatively just by using PPAs) supply would increase, and there might be some degree of demand efficiency improvements. The government shouldn’t need to build generation capacity—this is firmly within the expertise of the private sector.