How Energy Prices are Calculated | Peak Power

Описание: Video created in collaboration with PropModo

Energy pricing is heavily reliant on supply and demand economics. In a perfect world, at least in the context of a traditional power grid that continuously generates and dispatches electricity, we would require the same amount of power throughout the day.

Unfortunately this isn’t the case. Each day, electricity demand cycles into periods of low and high demand.

Early in the morning, when most people have yet to crawl out of bed, the power demand is relatively low. But during the hustle and bustle of the afternoon, when most people are switching on lights, tinkering with thermostats, or typing away at their computers, there’s a spike in power demand. This peak interval is usually between the hours of noon and 6 p.m., according to the U.S. Energy Administration.

Read the full article here: https://www.propmodo.com/how-energy-f...