It would be pretty ironic if we got to the point of too cheap to meter with renewable based electricity.
I realise that this is unlikely to happen but given the way prices are falling ...
I realise that this is unlikely to happen but given the way prices are falling ...
It’s not that electricity will be free when we get there, it’s just that consumers will stop paying for volume (how much energy did you use) and start paying for capacity / maximum demand (how much generation and network infrastructure was required to serve you).
I like to joke that electricity is already too cheap to meter; just look at all the free places to plug in a phone or laptop!
IMO: Energy will never be "too cheap to meter," because someone will always come up with a way to consume lots of cheap energy.
Jevons paradox:
> Economists have observed that consumers tend to travel more when their cars are more fuel efficient, causing a 'rebound' in the demand for fuel.[10] An increase in the efficiency with which a resource (e.g. fuel) is used, causes a decrease in the cost of using that resource when measured in terms of what it can achieve (e.g. travel). Generally speaking, a decrease in the cost (or price) of a good or service will increase the quantity demanded (the law of demand). With a lower cost for travel, consumers will travel more, increasing the demand for fuel. This increase in demand is known as the rebound effect, and it may or may not be large enough to offset the original drop in fuel use from the increased efficiency. The Jevons paradox occurs when the rebound effect is greater than 100%, exceeding the original efficiency gains.[5]