HSTEd
Veteran Member
- Joined
- 14 Jul 2011
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- 20,269
More or less, yes.Looking at electricity and gas domestic prices as an example, would you say that a large increase in generation capacity, will have the same price reduction per generated unit?
Leaving aside the suppply and demand factors, a large portion of costs in the current electricity system are in categories that are only weakly dependent on the amount of electricity used.
For example, billing and other administration isn't really related to the amount of electricity actually distributed. Grid costs are only weakly related to ratings, instead being primarily dependent on the number of subscribers and their geographic distribution. Doubling the rating of a piece of equipment or cable does not normally double its cost, including installation, servicing and such. There are other, less obvious examples.
But yes, if we had a similar system today, except it was used for twice as much electricity, prices per unit would be substantially lower.
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