This is a disturbingly poor letter, from Manish Nayar, described as a managing partner at OYA Solar, that the Windsor Star chose to publish on it's website.
Manish mistakenly states, “... many of us don't realize that our peak electricity demands are sometimes bought on the spot market for prices in excess of $2/kWh.”
We don't realize that because it is false. There are 3 hours since the IESO files begin, in 2002, when the market price exceeded $1/kWh, which is $1000/MW (you move the decimal point 3 places over because Mega is 1000 times more the kilo).
Manish also says, “Last week, the IESO paid $2.78/kWh for peak electricity demand.”
Actually, the amount of $278.13/MWh equates to 27.8 cents/kWh. That price occurred while demand was at a relatively moderate level (<20,000MW). Demand is only one driver of price; another is supply.
For examples of how erratic supply can impact pricing, see my Wind Jerks piece.
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