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Energy Analytics

How electricity markets and storage economics actually work: why the price mechanism can push wholesale power to zero, why a plant's nameplate rating overstates what it delivers, and the breakeven math a battery has to clear before arbitrage is worth doing.

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A 100 MW plant rarely delivers 100 MW

Capacity factor converts a plant’s nameplate rating into the energy it actually produces over time. 7 min read · Foundation Read the first note

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  1. 02 Solar can push the electricity price to zero — and that's a problem In a marginal-price market, enough zero-cost supply drives the clearing price down to the lowest offer in the stack.
  2. 03 1.18× is the arbitrage floor a battery actually needs A battery breaks even on energy only when the high price exceeds the low price divided by efficiency.

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