‘Consumer power’ on the power market: the new paradigm on electric power

Abstract

Abstract In the old, physical, way of regarding the Product Electricity as being similar to water flowing in pipes, the statement ‘All electricity mixes on the grid’ held true. The picture of a bathtub into which electricity was supplied (flowed) from different sources: Hydro, Nuclear, Fossil, and Wind & Solar was the norm, the ‘truth’. However, from a market and consumer power point of view, and from an economic point of view, this analogy with a bathtub actually reveals a misunderstanding of what the Product Electricity really is and how power is transferred from producer to consumer. Electricity which is audited does not mix with any other electricity. Only electricity which is not audited does mix. The anonymous agents who are the carriers of the purchased Product Electricity, i.e. the kWh:s, they are mixed. The product itself (the Product Electricity) is not mixed, if audited. The old bathtub analogy is false. It is an old misunderstanding of how electric power is traded and transferred. NB: It is electric power that is produced and consumed. Energy cannot be produced, nor consumed. The first law of thermodynamics states this as a fundamental law of nature. The new paradigm on electric power explains how the Product Electricity is transferred from power generator to power consumer. The transfer is made by help of anonymous and interchangeable agents: kWh:s. This is the correct way of understanding the new situation with deregulated power markets offering different ‘colours’ of power, i.e. electricity with different environmental loads, e.g. ‘Green Power’. The new paradigm uses an analogy with the banking system, ‘The Bank Grid’, where the parallel between bank grid and electric grid is, in fact, exact. In this new market situation the new paradigm on electric power shows that there exists a possible choice of not consuming any coal power. The 10 hottest years ever measured globally have all occurred since 2010, with the top ten being 2016, 2020, 2019, 2015, 2017, 2021, 2018, 2014, 2010, 2013, respectively. The Climate Crisis is here. The New Paradigm on Electric Power shows us how we can choose to not consume any power produced by fossil energy.