Economics
High peak loads drive the capital expenditures of the electricity generation industry. The industry meets these peak loads with low-efficiency peaking power plants, usually gas turbines, which have lower capital costs and, since the recent drop in natural gas prices have low fuel costs as well. A kilowatt-hour of electricity consumed at night can be produced at much lower marginal cost. Utilities have begun to pass these lower costs to consumers, in the form of Time of Use (TOU) rates, or Real Time Pricing (RTP) Rates. Stored solar thermal energy has the potential to provide cheaper peak-demand power than any other energy source.
Read more about this topic: Thermal Energy Storage
Famous quotes containing the word economics:
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