Power (im)balance in a different economy
Lately I had an interesting question on what can bring the day-ahead - imbalance price volatility down.
Side note: I believe this volatility is largely wanted by the regulator: volatility has to be sufficiently high to incentivize power market participants to improve. At the same time it should not kill the market, ensure enough competition etc.
In my opinion, in a longer term there aren't too many scenarios where imbalance price volatility can go down. However one scenario that I prefer thinking of: a combination of structural change towards a better and different demand response: imagine Europe's economy having less heavy industry and more data centers connected to each other where machine learning can be synchronised with renewables production. And this not just within country boarders. Instead of moving power around Europe we would move data.
What do you think?