Topic:"Generation Grid Resources" in M12350

As shown in Figure 4 , the unit average marginal costs, aside from following a different annual trend pattern with a higher overall volatility, are also significantly lower than unit revenues in each calendar year. This is because the unit...

AI summary The text discusses the relationship between unit average marginal costs and unit revenues, noting that marginal costs are significantly lower than revenues due to the inclusion of total costs across four functional areas: generation, transmission, distribution, and retail.

Competing Suppliers The act of establishing competing suppliers (more substitutes) will increase the price elasticity of demand faced by individual generation companies (so long as transmission is inexpensive and open access prevails), tho...

AI summary Establishing competing suppliers can increase price elasticity for individual generation companies, though its impact on overall market demand elasticity is uncertain. Market forces may lead to more substitutes, such as self-generation and distributed generation, especially for larger industrial customers.