One could be cost. See if you replace a bunch of peak demand with alternatives there is less of an appetite for fossil fuels, meaning less investment in infrastructure, bigger supply constraints during unplanned events. Natural gas plants maybe exposed to spot gas prices during this time. Check out this article:
https://www.dallasnews.com/business/energy/2021/02/16/electricity-retailer-griddys-unusual-plea-to-texas-customers-leave-now-before-you-get-a-big-bill/
If you agree to supply electricity (annual contracts) to households at a fixed price and the cost to produce goes up 100x, are you going to crank the turbines to max? It is probably going to bankrupt some producers.
Another problem is that electricity prices can't vary enough because consumers wouldn't be able to adjust consumption accordingly for lack of knowing what the current prices are. So electric pricing is regulated. So fuel price spikes lead to electric power shortages as plants offline to avoid losing money.
One could be cost. See if you replace a bunch of peak demand with alternatives there is less of an appetite for fossil fuels, meaning less investment in infrastructure, bigger supply constraints during unplanned events. Natural gas plants maybe exposed to spot gas prices during this time. Check out this article: https://www.dallasnews.com/business/energy/2021/02/16/electricity-retailer-griddys-unusual-plea-to-texas-customers-leave-now-before-you-get-a-big-bill/ If you agree to supply electricity (annual contracts) to households at a fixed price and the cost to produce goes up 100x, are you going to crank the turbines to max? It is probably going to bankrupt some producers.
Another problem is that electricity prices can't vary enough because consumers wouldn't be able to adjust consumption accordingly for lack of knowing what the current prices are. So electric pricing is regulated. So fuel price spikes lead to electric power shortages as plants offline to avoid losing money.