Kann: Rising transmission costs prevent delivered electricity prices from falling overall
Shayle Kann · Mailbag episode! Biotech, layoffs, battery recycling and more · Feb 2, 2023 · at 37:32
Shayle Kann (Energy Impact Partners) explains why falling solar generation costs do not translate into zero-cost delivered electricity for continuous, round-the-clock industrial operations.
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“The second point is there's a difference between the marginal cost of produced electrons and the marginal cost of delivered energy. And this is where the trend lines have been really distinct, where the marginal cost of production could be going down, but the cost of transmission distribution has been going up. And so overall delivered electricity prices have not been going down at all for customers, generally speaking, especially on a 87, 60, you know, like 365 days a year basis.”
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