Antinuclear

Small solar generators have helped electricity utilities

To The Editor The Advertiser, from Dennis Matthews, 6 July 14

In the National Electricity Market (NEM) it is the active participants who determine supply and demand.

The active participants are large electricity generators and large electricity consumers. It is the large generators that determine the wholesale price of electricity and it is large consumers who are able to negotiate with the generators.

Small electricity generators and consumers, such as small businesses and households have always been passive participants whose options are constrained by the active participants.

It makes more sense that large electricity consumers should be charged according to the maximum load they put on the network. Not only would this have a large and predictable effect on peak demand but it would be much easier than the proposal of the Grattan Institute (The Advertiser, 7/7/14) to put the onus on to households.

Thanks to the growth in roof mounted solar panels, peak demand has not only decreased but has been shifted to late in the day, thus making it easier for industry to reduce its demand at times of peak demand.

July 7, 2014 - Posted by Christina Macpherson | General News