Those flexible thermal assets can also ensure redundancy (eg. island mode operation) and enable faster demand connections running grids with smaller margins. I’m not sure gas will be the best fuel cause gas grid operators like more continuous use. Gas capacity fees would rise.

Process heat in the chemical sector is a perfect niche for developing SMRs. Far more competitive than producing electricity. Interesting project, thanks for sharing!

Thanks for your answer. Is that opportunity cost for the society or for a power producer? I don’t think power producers today include any fixed costs in their bids (due to interpretation of Remit). Hence they rely on higher price levels where players sell power that has already been bought/secured.

Thanks for a really nice publication. A question on the scarcity pricing chapter. It says that “the value of supplies (pricing above marginal cost)” should be “expressed during scarcity”. Does this harmonize with Acer guidance on Remit which implies that capacity should be offered at marginal cost?