Unraveling the Backbone of Electricity: A Deep Dive into Baseload Power
Modern electricity grids generally provide three types of electricity - baseload power, intermediate power, and peaking power. Baseload power is the “always on” power ensuring electricity is available whenever you flip a switch. Intermediate and peaking power is the electricity that’s called upon by grid operators to meet demand above baseload demand. In this blog post, we’ll journey through the essentials of baseload by understanding its crucial role in the market as well as the key benefits it provides.
What is Baseload Power?
At its core, baseload power is the minimum amount of power required to meet demand on a 24/7 basis. This power has historically been provided by generating resources like coal, hydroelectric, and nuclear. These power plants are always generating power that’s needed by the market.
Think of baseload power as the heartbeat in a human body. The heart is always pumping blood to where it’s needed like core organs. Without the heart, you would not be able to survive. Similarly, the modern electrical grid can’t function without baseload power plants generating electricity at all times.
How Does Baseload Power Work?
Constant output of electricity is the hallmark of baseload power. These generating plants, typically fueled by coal, hydroelectricity, or nuclear power operate 24/7/365. No matter what’s happening around us, baseload power plants are there when we need these resources.
Another way to think about baseload power is like that of a marathon runner. Peaking power plants are your sprinters that operate at high output for short periods of time. Conversely, baseload power plants are your marathon runners that can run at a solid clip for days on end.
Base Load Power Plants: The Backbone of Reliability
Grid operators strive for reliability. This is where baseload power plants play an integral role. The ability to provide electricity consistently makes baseload power plants ideal for meeting the minimum energy demand in the market. Particularly at night and during periods of low consumption, baseload power plants are well-suited to deliver electricity at this time.
Coal, hydroelectricity, and nuclear power plants are generating resources commonly associated with baseload power. One thing that I think about is the role battery energy storage systems will play as coal continues to be retired. A resource needs to fill in for this shortage of coal as the energy transition continues.
Base Load vs. Peak Load: Striking the Balance
Electricity markets need a constant supply of electricity, one that’s filled by baseload power plants. Operating with low marginal costs, baseload power plants are perfect for around-the-clock power to meet the minimum demand that’s required to sustain life.
However, during hot summer afternoons in the south or cold winter nights in the northeast, there’s another resource that makes its presence known. Peaking power plants are resources that market operators call upon to meet demand that can’t be met with baseload power plants.
Types of Base Load Power Plants
Coal, hydroelectric, and nuclear power plants are generally the ones providing baseload power. These plants tend to have high fixed costs but low marginal costs (price paid for the last increment of electricity). Each of these generating plants ensures electricity grids around the world are reliable and stable.
The role coal plays in generating baseload power continues to decline while hydroelectric and nuclear power are predicted to remain stable. As coal’s share of the generating resource mix decreases, it’ll be interesting to see what resource fills the supply gap. My money is on battery energy storage systems.
Benefits of Baseload Power
Why is baseload power vital to modern society? One word: reliability. Critical services like hospitals and essential factories sleep better at night knowing they’ll receive an uninterrupted supply of electricity. Baseload power plants step up to the plate to deliver power when it’s most needed.
How much would critical services pay for electricity? There’s likely not a dollar amount they wouldn’t pay to be able to keep the lights on. This is why reliability is massive for electricity markets. Key customers have to have access to power whenever they need it making it vital for baseload power plants to be there when the market needs them.
Challenges of Baseload Power
Providing a constant supply of electricity is where baseload power shines. However, baseload power isn’t well-suited for changes in demand. This is where intermediate and peaking power plants come into play. When demand increases beyond baseload demand, the market taps non-baseload resources.
Solar, wind and natural gas power plants generally fill the role of demand greater than baseload demand. These resources fill the gap in the supply during the morning ramp, mid-day peak, and evening ramp, depending on the time of the year. Solar, wind and natural gas work great when they have access to their respective resources.
Base Load Power and Renewables: Finding Harmony
Firm power is a concept by which generating resources commit to providing electricity at all times. Solar and wind generally can’t provide firm power as both resources need either the sun or wind to generate electricity. That’s why natural gas, when it’s supply is constant, continues to play a role when firm power is needed above the baseload demand.
As battery energy storage system costs decrease over time, solar and wind coupled with storage can likely offer firm power. Here’s how it works - the battery charges when the sun is shining or the wind is blowing. When the sun isn’t shining or the wind isn’t blowing, stored energy from the battery is dispatched into the market providing constant electricity.
In Conclusion: The Unsung Hero
Our electricity grid has a constant level of demand that needs to be met by baseload power plants. These resources power our daily lives ensuring society functions. Solar and wind, coupled with battery energy storage, can play a role in the baseload generation mix if the cost curve of storage continues to decrease and the long-duration storage market matures. It’ll be interesting to see how these dynamics play out as the energy transition continues.
