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what is the Merit order effect and how could Renewables decrease your bills in liberalized electricity markets electricity produced by generators is bought by retailers at the wholesale price and distributed to their customers quick disclaimer Iamp;#39;ll be making some simplifications in this video and Iamp;#39;ll only talk about the wholesale spot Market but itamp;#39;s important to know that electricity markets also include bilateral agreements and other markets such as capacity markets but essentially supply of electricity by generators needs to meet demand also known as load at all times because you want to avoid this so how does it work well generators sell electricity at different prices depending on their costs of generating that electricity in other words depending on their marginal variable SL operating costs so since Renewables such as wind and solar have close to zero marginal costs because once your turbine is built the wind does most of th
