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mikema63 wrote:Small independent electrical systems are hindered from implementation because the loss of efficiency created by redundant power grids makes the economics of independent systems prohibitively expensive for anyone not wealthy. Electrical power is a classic case of natural monopoly. If the government didn't control the power grid then it would be centrally controlled by national or regional monopolies which would leave people worse off.
mikema63 wrote:The problem isn't the generators it's the grid. To have your own independent power supply you need an independent grid. This is not only expensive to build but also maintain. This infrastructure isn't something that would get cheaper from popularity, it's a fixed cost.
Like I said electrical power is a natural monopoly, it cannot be a competitive market no matter what. The best you can have is a heavily regulated or nationalized market.
The grid is only necessary due to the huge numbers served by the individual companies.
mikema63 wrote:This is simply incorrect. The grid exists because the fixed costs of power generation are the main costs. The total fixed cost of unified systems is lower (and therefor lower for individual consumers) than the fixed cost of independent systems. The grid exists because the economics of power generation create them. Indeed the majority of Americans simply wouldn't be able to afford to generate their own power and independent infrastructure. Simply asserting that we would be better off with independent systems ignores the fact that reality will not allow it.
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