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87-416: There are a few similar definitions of the capacity credit: The capacity credit can be much lower than the capacity factor (CF): in a not very probable scenario, if the riskiest time for the power system is after sunset, the capacity credit for solar power without coupled energy storage is zero regardless of its CF (under this scenario all existing conventional power plants would have to be retained after

174-418: A private electronic market , as a commodity wholesale market , as a shopping center , as complex institutions such as international markets and as an informal discussion between two individuals. Markets vary in form, scale (volume and geographic reach), location and types of participants as well as the types of goods and services traded. The following is a non exhaustive list: Financial markets facilitate

261-560: A booth fee, competitive pricing, and source of goods for sale (local produce or stock registration). Markets can differ by products (goods, services) or factors (labour and capital) sold, product differentiation , place in which exchanges are carried, buyers targeted, duration, selling process, government regulation, taxes, subsidies, minimum wages , price ceilings , legality of exchange, liquidity, intensity of speculation, size, concentration, exchange asymmetry, relative prices , volatility and geographic extension. The geographic boundaries of

348-542: A given installation is defined as that due to its continuous operation at full nameplate capacity over the relevant period. The capacity factor can be calculated for any electricity producing installation, such as a fuel consuming power plant or one using renewable energy , such as wind, the sun or hydro-electric installations. The average capacity factor can also be defined for any class of such installations, and can be used to compare different types of electricity production. The actual energy output during that period and

435-567: A higher capacity factor than many other power sources, and geothermal resources are generally available all the time. According to the US Energy Information Administration (EIA), from 2013 to 2017 the capacity factors of utility-scale generators were as follows: However, these values often vary significantly by month. The following figures were collected by the Department of Energy and Climate Change on

522-429: A large-scale photovoltaic system (PV system). An inherent limit to its capacity factor comes from its requirement of daylight , preferably with a sun unobstructed by clouds, smoke or smog , shade from trees and building structures. Since the amount of sunlight varies both with the time of the day and the seasons of the year, the capacity factor is typically computed on an annual basis. The amount of available sunlight

609-502: A market is the process by which the prices of goods and services are established. Markets facilitate trade and enable the distribution and allocation of resources in a society. Markets allow any trade-able item to be evaluated and priced . A market sometimes emerges more or less spontaneously or may be constructed deliberately by human interaction in order to enable the exchange of rights (cf. ownership ) of services and goods. Markets of varying types can spontaneously arise whenever

696-537: A market is the process by which the value of goods and services are established. Markets facilitate trade and enable the distribution and allocation of resources in a society. Markets allow any tradeable item to be evaluated and priced . A market emerges more or less spontaneously or may be constructed deliberately by human interaction in order to enable the exchange of rights (cf. ownership ) of services and goods. Markets generally supplant gift economies and are often held in place through rules and customs, such as

783-444: A market may vary considerably, for example the food market in a single building, the real estate market in a local city, the consumer market in an entire country, or the economy of an international trade bloc where the same rules apply throughout. Markets can also be worldwide, see for example the global diamond trade . National economies can also be classified as developed markets or developing markets . In mainstream economics ,

870-499: A market, the relationship is short term and restricted to the contract. In the case of firms and other co-ordinating mechanisms, it is for a longer duration. In the modern world, much economic activity takes place through fiat and not the market. Lafontaine and Slade (2007) estimates, in the US, that the total value added in transactions inside the firms equal the total value added of all market transactions. Similarly, 80% of all World Trade

957-404: A nameplate capacity of 2080 MW and an annual generation averaging 4.2 TW·h. (The annual generation has varied between a high of 10.348 TW·h in 1984, and a low of 2.648 TW·h in 1956. ). Taking the average figure for annual generation gives a capacity factor of: At the low range of capacity factors is the photovoltaic power station , which supplies power to the electricity grid from

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1044-426: A nameplate capacity of 25.7 MW and an actual average annual production of 26.98 GWh/year it has a capacity factor of 12.0%. There are several reasons why a plant would have a capacity factor lower than 100%. These include technical constraints, such as availability of the plant, economic reasons, and availability of the energy resource. A plant can be out of service or operating at reduced output for part of

1131-404: A nameplate capacity of 3,942 MW. In 2010 its annual generation was 31,200,000 MWh, leading to a capacity factor of: Each of Palo Verde’s three reactors is refueled every 18 months, with one refueling every spring and fall. In 2014, a refueling was completed in a record 28 days, compared to the 35 days of downtime that the 2010 capacity factor corresponds to. In 2019, Prairie Island 1

1218-462: A particular occupation, and to cultivate and bring to perfection whatever talent of genius he may possess for that particular species of business." And explains how exchanged mediated by money came to dominate the market: "But when barter ceases, and money has become the common instrument of commerce , every particular commodity is more frequently exchanged for money than for any other commodity . The butcher seldom carries his beef or his mutton to

1305-572: A party has interest in a good or service that some other party can provide. Hence there can be a market for cigarettes in correctional facilities, another for chewing gum in a playground, and yet another for contracts for the future delivery of a commodity. There can be black markets , where a good is exchanged illegally, for example markets for goods under a command economy despite pressure to repress them and virtual markets , such as eBay , in which buyers and sellers do not physically interact during negotiation. A market can be organized as an auction , as

1392-492: A period of fiscal and ideological crisis, state failure is seen as the catalyst for liberalization, however the failure in assuring water quality can be seen as a driver for economic and ecological reregulation (in this case coming from the European Union ). More broadly the idea of a water market failure can be seen as the explanation for state intervention, generating a natural monopoly of hydraulic infrastructure and

1479-429: A plant is only needed during the day, for example, even if it operates at full power output from 8 am to 8 pm every day (12 hours) all year long, it would only have a 50% capacity factor. Due to low capacity factors, electricity from peaking power plants is relatively expensive because the limited generation has to cover the plant fixed costs. A third reason is that a plant may not have the fuel available to operate all of

1566-507: A possible solution to this problem, using the supply and demand model. Marshall's idea of solving the controversy was that the demand curve could be derived by aggregating individual consumer demand curves, which were themselves based on the consumer problem of maximizing utility . The supply curve could be derived by superimposing a representative firm supply curves for the factors of production and then market equilibrium (economic equivalent of mechanical equilibrium ) would be given by

1653-427: A recipe from immediately available ingredients, and at other times invents new ingredients no one else has tried. The functions of total marketing include advertising , personal selling , packaging , pricing , channeling and warehousing . Borden also identified the market forces affecting marketing mix: Borden concludes saying that marketing is more an art than a science. The marketer E. Jerome McCarthy proposed

1740-415: A seller or sellers with monopoly power, or a buyer with monopsony power. Such price distortions can have an adverse effect on market participant's welfare and reduce the efficiency of market outcomes. The relative level of organization and negotiating power of buyers and sellers also markedly affects the functioning of the market. Markets are a system and systems have structure . The structure of

1827-407: A single seller and multiple buyers is a monopoly . A market with a single buyer and multiple sellers is a monopsony . These are "the polar opposites of perfect competition". As an argument against such logic, there is a second view that suggests that the source of market failures is inside the market system itself, therefore the removal of other interfering systems would not result in markets with

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1914-412: A society where this form is dominant, permeating every expression of life, and a society where it only makes an episodic appearance is essentially one of quality. For depending on which is the case, all the subjective phenomena in the societies concerned are objectified in qualitatively different ways. Human labour is abstracted and incorporated in commodities: The ultimate problem for the thought of

2001-465: A sort of house- carpenter . In the same manner a third becomes a smith or a brazier ; a fourth, a tanner or dresser of hides or skins, the principal part of the clothing of savages. And thus the certainty of being able to exchange all that surplus part of the produce of his own labour, which is over and above his own consumption , for such parts of the produce of other men's labour as he may have occasion for, encourages every man to apply himself to

2088-408: A specific segments of consumers : the defining factors of the markets are determined by demographics, interests and age/gender. A small market is a niche market , while a big market is a mass market . A form of expansion is to enter a new market and sell/advertise to a different set of users. The marketing management school, evolved in the late 1950s and early 1960s, is fundamentally linked with

2175-433: A stopped condition to full power in just a few minutes. Wind farms are variable, due to the natural variability of the wind. For a wind farm, the capacity factor is determined by the availability of wind, the swept area of the turbine and the size of the generator . Transmission line capacity and electricity demand also affect the capacity factor. Typical capacity factors of current wind farms are between 25 and 45%. In

2262-400: A structure of perfect competition. As an analogy, such an argument may suggest that capitalists do not want to enhance the structure of markets, just like a coach of a football team would influence the referees or would break the rules if he could while he is pursuing his target of winning the game. Thus, according to this view, capitalists are not enhancing the balance of their team versus

2349-644: A variety of mixed economies . Drawing on concepts of institutional variance and path dependence , varieties of capitalism theorists (such as Peter Hall and David Soskice ) identify two dominant modes of economic ordering in the developed capitalist countries: However, such approaches imply that the Anglo-American liberal market economies in fact operate in a matter close to the abstract notion of "the market". While Anglo-American countries have seen increasing introduction of neo-liberal forms of economic ordering, this has not led to simple convergence, but rather

2436-653: A variety of hybrid institutional orderings. Rather, a variety of new markets have emerged, such as for carbon trading or rights to pollute. In some cases, such as emerging markets for water in England and Wales , different forms of neoliberalism have been tried: moving from the state hydraulic model associated with concepts of universal provision and public service to market environmentalism associated with pricing of environmental externalities to reduce environmental degradation and efficient allocation of water resources. In this case liberalization has multiple meanings: In

2523-574: A well-functioning market is defined by the theory of perfect competition . Well-functioning markets of the real world are never perfect, but basic structural characteristics can be approximated for real world markets, for example: Markets where price negotiations meet equilibrium, but the equilibrium is not efficient are said to experience market failure . Market failures are often associated with time-inconsistent preferences , information asymmetries , non-perfectly competitive markets , principal–agent problems , externalities , or public goods . Among

2610-586: Is by treaty , by barter , and by purchase , that we obtain from one another the greater part of those mutual good offices which we stand in need of, so it is this same trucking disposition which originally gives occasion to the division of labour . In a tribe of hunters or shepherds , a particular person makes bows and arrows, for example, with more readiness and dexterity than any other. He frequently exchanges them for cattle or for venison, with his companions; and he finds at last that he can, in this manner, get more cattle and venison, than if he himself went to

2697-411: Is commodity exchange together with its structural consequences able to influence the total outer and inner life of society? Thus the extent to which such exchange is the dominant form of metabolic change in a society cannot simply be treated in quantitative terms—as would harmonize with the modern modes of thought already eroded by the reifying effects of the dominant commodity form. The distinction between

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2784-690: Is conducted under Global Value Chains (2012 estimate), while 33% (1996 estimate) is intra-firm trade. Nearly 50% of US imports and 30% of exports take place within firms. While Rajan and Zingales (1998) have found that in 43 countries two-thirds of the growth in value added between 1980 and 1990 came from increase in firm size. A market is one of the many varieties of systems , institutions , procedures, social relations and infrastructures whereby parties engage in exchange. While parties may exchange goods and services by barter , most markets rely on sellers offering their goods or services (including labour) in exchange for money from buyers. It can be said that

2871-452: Is driven by air conditioning and occurs on summer afternoons and evenings, while the wind is strongest at night, with offshore wind strongest in the winter. This results in a relatively low CC for such potential wind power locations: for example in Texas a predicted average for onshore wind is 13% and for offshore wind is 7%. In Great Britain , the solar contribution to the system adequacy

2958-705: Is generally the availability of the energy source. The plant may be capable of producing electricity, but its "fuel" ( wind , sunlight or water ) may not be available. A hydroelectric plant's production may also be affected by requirements to keep the water level from getting too high or low and to provide water for fish downstream. However, solar, wind and hydroelectric plants do have high availability factors , so when they have fuel available, they are almost always able to produce electricity. When hydroelectric plants have water available, they are also useful for load following, because of their high dispatchability . A typical hydroelectric plant's operators can bring it from

3045-502: Is generally used in two ways: Economics used to be called political economy , as Adam Smith defined it in The Wealth of Nations : Political economy, considered as a branch of the science of a statesman or legislator, proposes two distinct objects; first, to provide a plentiful revenue or subsistence for the people, or, more properly, to enable them to provide such a revenue or subsistence for themselves; and, secondly, to supply

3132-416: Is mostly determined by the latitude of the installation and the local cloud cover. The actual production is also influenced by local factors such as dust and ambient temperature, which ideally should be low. As for any power station, the maximum possible power production is the nameplate capacity times the number of hours in a year, while the actual production is the amount of electricity delivered annually to

3219-486: Is not always clear how the allocation of resources can be improved since there is always the possibility of government failure . In economics, a market is a coordinating mechanism that uses prices to convey information among economic entities (such as firms , households and individuals) to regulate production and distribution. In his seminal 1937 article " The Nature of the Firm ", Ronald Coase wrote: "An economist thinks of

3306-484: Is small and is primarily due to scenarios when the use of solar allows to keep the battery storage fully charged until later in the evening. The National Grid ESO in 2019 suggested planning for the following EFC-based de-rating: Capacity factor The net capacity factor is the unitless ratio of actual electrical energy output over a given period of time to the theoretical maximum electrical energy output over that period. The theoretical maximum energy output of

3393-584: Is that market failure is thought to be caused by other exogenic systems, and after removing those exogenic systems ("freeing" the markets) the free markets could run without market failures. For a market to be competitive, there must be more than a single buyer or seller. It has been suggested that two people may trade, but it takes at least three persons to have a market so that there is competition in at least one of its two sides. However, competitive markets—as understood in formal economic theory—rely on much larger numbers of both buyers and sellers. A market with

3480-469: Is unrelated to Betz's coefficient of 16/27 ≈ {\displaystyle \approx } 59.3%, which limits production vs. energy available in the wind. As of 2017 Three Gorges Dam in China is, with its nameplate capacity of 22,500 MW, the largest power generating station in the world by installed capacity. In 2015 it generated 87 TWh, for a capacity factor of: Hoover Dam has

3567-540: The marketing mix framework, a business tool used in marketing and by marketers. In his paper "The Concept of the Marketing Mix", Neil H. Borden reconstructed the history of the term "marketing mix". He started teaching the term after an associate, James Culliton, described the role of the marketing manager in 1948 as a "mixer of ingredients"; one who sometimes follows recipes prepared by others, sometimes prepares his own recipe as he goes along, sometimes adapts

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3654-457: The south-western United States , although in some locations solar PV does not reduce the need for generation of network upgrades given that air conditioner peak demand often occurs in the late afternoon or early evening when solar output is reduced. SolarPACES states that by using thermal energy storage systems the operating periods of solar thermal power (CSP) stations can be extended to become dispatchable (load following). Geothermal has

3741-452: The 1970s the study of market failures came into focus with the study of information asymmetry . In particular, three authors emerged from this period: Akerlof, Spence and Stiglitz. Akerlof considered the problem of bad quality cars driving good quality cars out of the market in his classic " The Market for Lemons " (1970) because of the presence of asymmetrical information between buyers and sellers. Michael Spence explained that signaling

3828-565: The 19th century debates surrounding the works of Antoine Augustin Cournot , William Stanley Jevons , Carl Menger and Léon Walras —this period is usually denominated as the Marginal Revolution . A recurring theme of these debates was the contrast between the labor theory of value and the subjective theory of value , the former being associated with classical economists such as Adam Smith , David Ricardo and Karl Marx (Marx

3915-730: The CC of the wind power is expected to increase from 14% to 22% within the same period. A 2020 study of ELCC by California utilities recommends even more pessimistic values for photovoltaics: by 2030 the ELCC of solar will become "nearly zero". The California Public Utilities Commission orders of 2021 and 2023 intend to add by 2035 additional renewable generation capacity with NQC of 15.5 GW and nameplate capacity of 85 GW, implying planned NQC for renewables (a combination of solar and wind), combined with geothermal , batteries, long-term storage, and demand response to be 15.5/85 = 18%. In some areas peak demand

4002-883: The United Kingdom during the five year period from 2011 to 2019 the annual capacity factor for wind was over 30%. Solar energy is variable because of the daily rotation of the earth, seasonal changes, and because of cloud cover. For example, the Sacramento Municipal Utility District observed a 15% capacity factor in 2005. However, according to the SolarPACES programme of the International Energy Agency (IEA), solar power plants designed for solar-only generation are well matched to summer noon peak loads in areas with significant cooling demands, such as Spain or

4089-460: The VRE at peak times is negligible, the CC of a VRE plant is close to its capacity factor. For high penetrations, due to the fact that the weather tends to affect all plants of similar type at the same time and in the same way - and the chance of a system stress during low wind condition increases, the capacity credit of a VRE plant decreases. Greater geographical diversity of the VRE installations improves

4176-412: The baker or the brewer, in order to exchange them for bread or for beer; but he carries them to the market, where he exchanges them for money, and afterwards exchanges that money for bread and for beer . The quantity of money which he gets for them regulates, too, the quantity of bread and beer which he can afterwards purchase. It is more natural and obvious to him, therefore, to estimate their value by

4263-419: The basic market forces of supply and demand . A major topic of debate is how much a given market can be considered to be a " free market ", that is free from government intervention . Microeconomics traditionally focuses on the study of market structure and the efficiency of market equilibrium ; when the latter (if it exists) is not efficient, then economists say that a market failure has occurred. However, it

4350-484: The bourgeoisie is the crisis : the qualitative existence of the 'things' misunderstood as use-values become the decisive factor. The failure is characteristic of classical economics and bourgeoisie economics, inadequate at explaining the true movement of economic activity in toto . The state has a system of law corresponding to capitalist needs: bureaucracy , formal standardization of justice and civil service . C. B. Macpherson identifies an underlying model of

4437-478: The capacity credit value, assuming a grid that can carry all necessary load. Increasing the penetration of one VRE resource also can result in increasing the CC for another one, e.g., in California, increase in solar capacity, with a low incremental CC, expected to be 8% in 2023 and dropping to 6% by 2026, helps shifting the peak demand from other sources later into the evening, when the wind is stronger, therefore

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4524-433: The capacity factor vary greatly depending on a range of factors. The capacity factor can never exceed the availability factor , or uptime during the period. Uptime can be reduced due to, for example, reliability issues and maintenance, scheduled or unscheduled. Other factors include the design of the installation, its location, the type of electricity production and with it either the fuel being used or, for renewable energy,

4611-524: The capacity factors for various types of plants in UK grid: Market forces Heterodox In economics , a market is a composition of systems , institutions , procedures, social relations or infrastructures whereby parties engage in exchange . While parties may exchange goods and services by barter , most markets rely on sellers offering their goods or services (including labour power ) to buyers in exchange for money . It can be said that

4698-439: The concept of a market is any structure that allows buyers and sellers to exchange any type of goods, services and information . The exchange of goods or services, with or without money , is a transaction . Market participants or economic agents consist of all the buyers and sellers of a good who influence its price , which is a major topic of study of economics and has given rise to several theories and models concerning

4785-402: The current power need, conserving its stored water for later usage. Other reasons that a power plant may not have a capacity factor of 100% include restrictions or limitations on air permits and limitations on transmission that force the plant to curtail output. For renewable energy sources such as solar power , wind power and hydroelectricity , the main reason for reduced capacity factor

4872-416: The economic system as being coordinated by the price mechanism....in economic theory, we find that the allocation of factors of production between different uses is determined by the price mechanism". Thus the usage of the price mechanism to convey information is the defining feature of the market. This is in contrast to a firm, which as Coase put it, "the distinguishing mark of the firm is the super-session of

4959-486: The economist, market distribution is therefore part of production because it deals with the creation of utilities, and "distribution" refers to the distribution of wealth among the members of society. The businessman, however, thinks of distribution as selling his goods and getting them into the hands of the consumer. To the businessman, "distribution" means marketing—selling and transportation. The methods of studying marketing are: Businesses market their products/services to

5046-433: The electricity is not needed or because the price of electricity is too low to make production economical. This accounts for most of the unused capacity of peaking power plants and load following power plants . Peaking plants may operate for only a few hours per year or up to several hours per day. Many other power plants operate only at certain times of the day or year because of variation in loads and electricity prices. If

5133-408: The essence of commodity-structure:. Before tackling the problem itself we must be quite clear in our minds that commodity fetishism is a specific problem of our age, the age of modern capitalism . Commodity exchange and the corresponding subjective and objective commodity relations existed, as we know, when society was still very primitive. What is at issue here, however, is the question: how far

5220-406: The exchange of liquid assets . Most investors prefer investing in two markets: There are also: In economics, a market that runs under laissez-faire policies is called a free market : it is "free" from the government, in the sense that the government makes no attempt to intervene through taxes , subsidies , minimum wages , price ceilings and so on. However, market prices may be distorted by

5307-455: The exchangeable value of every commodity is more frequently estimated by the quantity of money, than by the quantity either of labour or of any other commodity which can be had in exchange for it." Microeconomics (from Greek prefix mikro - meaning "small" and economics) is a branch of economics that studies the behavior of individuals and small impacting organizations in making decisions on the allocation of limited resources (see scarcity ). On

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5394-400: The existence of the firm. Incomplete contract theories that are explicitly based on bounded rationality lead to the costs of writing complete contracts. Such theories include: Transaction Cost Economies by Oliver Williamson and Residual Rights Theory by Groomsman, Hart, and Moore. The market/firm distinction can be contrasted with the relationship between the agents transacting. While in

5481-485: The field to catch them. From a regard to his own interest , therefore, the making of bows and arrows grows to be his chief business, and he becomes a sort of armourer . Another excels in making the frames and covers of their little huts or moveable houses. He is accustomed to be of use in this way to his neighbours, who reward him in the same manner with cattle and with venison, till at last he finds it his interest to dedicate himself entirely to this employment, and to become

5568-520: The grid. For example, Agua Caliente Solar Project , located in Arizona near the 33rd parallel and awarded for its excellence in renewable energy has a nameplate capacity of 290 MW and an actual average annual production of 740 GWh/year. Its capacity factor is thus: A significantly lower capacity factor is achieved by Lauingen Energy Park located in Bavaria , near the 49th parallel. With

5655-410: The hierarchical firm and price-coordinating market(e.g. global value chains , Business Ventures , Joint Venture , and strategic alliances ). The reasons for the existence of firms or other forms of co-ordinating mechanisms of production and distribution alongside the market are studied in "The Theory of the Firm" literature, with various complete and incomplete contract theories trying to explain

5742-468: The intersection of demand and supply curves. He also introduced the notion of different market periods: mainly long run and short run . This set of ideas gave way to what economists call perfect competition —now found in the standard microeconomics texts, even though Marshall himself was highly skeptical it could be used as general model of all markets. Opposed to the model of perfect competition, some models of imperfect competition were proposed: Around

5829-498: The later nineteenth century, as so called liberal economists such as Ricardo , Mill , Jevons , Walras and later neo-classical economics shifted from reference to geographically located marketplaces to an abstract "market". This tradition is continued in contemporary neoliberalism epitomised by the Mont Pelerin Society which gathered Frederick Hayek , Ludwig von Mises , Milton Friedman and Karl Popper , where

5916-427: The lifetime of the power source, both while operational and after decommissioning. A capacity factor can also be expressed and converted to full load hours . Nuclear power plants are at the high end of the range of capacity factors, ideally reduced only by the availability factor , i.e. maintenance and refueling. The largest nuclear plant in the US, Palo Verde Nuclear Generating Station has between its three reactors

6003-436: The local weather conditions. Additionally, the capacity factor can be subject to regulatory constraints and market forces , potentially affecting both its fuel purchase and its electricity sale. The capacity factor is often computed over a timescale of a year, averaging out most temporal fluctuations. However, it can also be computed for a month to gain insight into seasonal fluctuations. Alternatively, it can be computed over

6090-413: The major negative externalities which can occur as a side effect of production and market exchange, are air pollution (side-effect of manufacturing and logistics ) and environmental degradation (side-effect of farming and urbanization ). There exists a popular thought, especially among economists , that free markets would have a structure of a perfect competition . The logic behind this thought

6177-509: The market is held up as optimal for wealth creation and human freedom and the states' role imagined as minimal, reduced to that of upholding and keeping stable property rights, contract and money supply. According to David Harvey , this allowed for boilerplate economic and institutional restructuring under structural adjustment and post-Communist reconstruction. Similar formalism occurs in a wide variety of social democratic and Marxist discourses that situate political action as antagonistic to

6264-503: The market underlying Anglo-American liberal democratic political economy and philosophy in the seventeenth and eighteenth centuries: persons are cast as self-interested individuals, who enter into contractual relations with other such individuals, concerning the exchange of goods or personal capacities cast as commodities, with the motive of maximizing pecuniary interest. The state and its governance systems are cast as outside of this framework. This model came to dominant economic thinking in

6351-509: The market. A central theme of empirical analyses is the variation and proliferation of types of markets since the rise of capitalism and global scale economies. The Regulation school stresses the ways in which developed capitalist countries have implemented varying degrees and types of environmental, economic and social regulation, taxation and public spending, fiscal policy and government provisioning of goods, all of which have transformed markets in uneven and geographical varied ways and created

6438-530: The onshore 1 GW Fosen Vind which as of 2017 is under construction in Norway has a projected capacity factor of 39%. Feasibility calculations may be affected by seasonality. For example in Finland, capacity factor during the cold winter months is more than double compared to July. While the annual average in Finland is 29.5%, the high demand for heating energy correlates with the higher capacity factor during

6525-456: The other hand, macroeconomics (from the Greek prefix makro - meaning "large" and economics) is a branch of economics dealing with the performance, structure, behavior and decision-making of an economy as a whole, rather than individual markets. The modern field of microeconomics arose as an effort of neoclassical economics school of thought to put economic ideas into mathematical mode. It began in

6612-521: The price mechanism". Thus, Firms and Markets are two opposite forms of organizing production; Coase wrote: Outside the firm, price movements direct production, which is co-ordinated through a series of exchange transactions on the market. Within a firm, these market transactions are eliminated and in place of the complicated market structure with exchange transactions is substituted the entrepreneur-co-ordinator, who directs production. There are also other hybrid forms of coordinating mechanisms, in between

6699-411: The quantity of money, the commodity for which he immediately exchanges them, than by that of bread and beer, the commodities for which he can exchange them only by the intervention of another commodity; and rather to say that his butcher's meat is worth three-pence or fourpence a-pound, than that it is worth three or four pounds of bread, or three or four quarts of small beer. Hence it comes to pass, that

6786-492: The regulation of externalities such as water pollution . The situation however is not that simple, as the regulator may have the duty of introducing competition, which can be: Introduction of metering can result in both restriction and increase of consumption with LRMC pricing being the regulator ( Ofwat ) preferred methodology. Paul Dulaney Converse and Fred M. Jones wrote: Market distribution includes those activities which create place, time, and possession utilities. To

6873-418: The solar installation is added). More generally, the CC is low when the times of the day (or seasons) for the peak load do not correlate well with times of high energy production. Ensslin et al. report wind CC values ranging from 40% down to 5%, with values dropping off with increased wind power penetration . For very low penetrations (few percent), when the chance of the system actually being forced to rely on

6960-541: The state or commonwealth with a revenue sufficient for the public services. It proposes to enrich both the people and the sovereign . The earliest works of political economy are usually attributed to United Kingdom scholars Adam Smith, Thomas Malthus , and David Ricardo , although they were preceded by the work of the French physiocrats, such as François Quesnay (1694–1774) and Anne-Robert-Jacques Turgot (1727–1781). Smith describes how exchange of goods arose: "As it

7047-544: The team of consumer - workers , so the market system needs a "referee" from outside that balances the game. In this second framework, the role of a "referee" of the market system is usually to be given to a democratic government. Disciplines such as sociology , economic history , economic geography and marketing developed novel understandings of markets studying actual existing markets made up of persons interacting in diverse ways in contrast to an abstract and all-encompassing concepts of "the market". The term "the market"

7134-591: The time due to equipment failures or routine maintenance. This accounts for most of the unused capacity of base load power plants . Base load plants usually have low costs per unit of electricity because they are designed for maximum efficiency and are operated continuously at high output. Geothermal power plants , nuclear power plants , coal-fired plants and bioenergy plants that burn solid material are almost always operated as base load plants, as they can be difficult to adjust to suit demand. A plant can also have its output curtailed or intentionally left idle because

7221-426: The time. This can apply to fossil generating stations with restricted fuels supplies, but most notably applies to intermittent renewable resources. Solar PV and wind turbines have a capacity factor limited by the availability of their "fuel", sunshine and wind respectively. A hydroelectricity plant may have a capacity factor lower than 100% due to restriction or scarcity of water, or its output may be regulated to match

7308-475: The winter. Certain onshore wind farms can reach capacity factors of over 60%, for example the 44 MW Eolo plant in Nicaragua had a net generation of 232.132 GWh in 2015, equivalent to a capacity factor of 60.2%, while United States annual capacity factors from 2013 through 2016 range from 32.2% to 34.7%. Since the capacity factor of a wind turbine measures actual production relative to possible production, it

7395-438: Was a contemporary of the marginalists). A labour theory of value can be understood as a theory that argues that economic value is determined by the amount of socially necessary labour time while a subjective theory of value derives economic value from subjective preferences, usually by specifying a utility function in accordance with utilitarian philosophy . In his Principles of Economics (1890), Alfred Marshall presented

7482-437: Was fundamental in the labour market since employers cannot know beforehand which candidate is the most productive, a college degree becomes a signaling device that a firm uses to select new personnel. Stiglitz provided some general conditions under which market equilibrium is not efficient : presence of externalities , imperfect information and incomplete markets . György Lukács , a founder of Western Marxism wrote about

7569-413: Was the US unit with the highest factor and actually reached 104.4%. The Danish offshore wind farm Horns Rev 2 has a nameplate capacity of 209.3 MW. As of January 2017 it has produced 6416 GWh since its commissioning 7 years ago, i.e. an average annual production of 875 GWh/year and a capacity factor of: Sites with lower capacity factors may be deemed feasible for wind farms, for example

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