Electricity prices are extremely volatile. This is because there is effectively no storage or inventory and generation and load (supply and demand) need to be precisely matched at all times. Intermittent renewables, such as solar, add additional complexity and volatility to this mix. Generation (supply) is a function of the sun, not of demand. When the sun goes down, the supply goes down but demand is uncoupled from that. So fast ramping expensive power needs to be brought online quickly to keep the system in balance. This means that prices during the solar (supply) fall off, skyrocket. The following graphs display this beautifully. Notice that during most of the day, there is excess supply available but around 4:00 PM solar starts declining and the excess supply evaporates and prices go to the moon. To put this in economic perspective, during most of the day, energy prices are in the $ 30 to $ 40 per megawatt hour range. At 8 PM, prices have reached $ 4,000 per megawatt hour. A 100 fold increase.
Volatility like this can destroy your budget and financial planning. To protect your bottom line it is best to secure the assistance of a Concierge Utility, like Exergy Energy (www.exergyenergy.com). We stand between you and the complex and volatile energy markets and provide you with the power you need that meets your corporate goals.