Distributed Energy Resources

The Conventional Grid

In a traditional power system, generation is large and centralized — coal plants, gas turbines, nuclear — all connected to the high-voltage transmission grid.

This system has:

• Coal Plant: 600 MW at $30/MWh — cheap baseload, runs all day
• Gas CC: 300 MW at $50/MWh — flexible, runs when coal isn't enough
• City Load: 700 MW (flat all day)

With 700 MW of demand and coal covering only 600 MW, the gas plant must run 100 MW to cover the gap. The LMP is $50/MWh everywhere — gas is the marginal unit.

Power flows in one direction: generators → loads. The grid operator only has to worry about big, predictable plants.