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Volume-weighted average prices (VWAPs) can be constructed to reflect the prices paid to a producer. For example, if the price in period 1 is $10
Volume-weighted average prices (VWAPs) can be constructed to reflect the prices paid to a producer. For example, if the price in period 1 is $10 and the price in period 2 is $20, then the VWAP for a generator that produces 100MWh in period 1 and 0MWh in period 2 is (100*10 + 0*20)/(100+0) = $10. A generator that produces 100MWh in both periods has a VWAP of(100*10 + 100*20)/(100+100) = $15. Which of the following statements is most likely correct in Australia? a.The VWAP for solar farms (that generate en ergy when the sun shines) is greater than the VWAP for coal plants (that tend to generate energy at a constant rate at all times) b.The VWAP for solar farms (that generate energy when the sun shines) is greater than the VWAP for gas peaker plants (that tend to generate energy in times of high demand) c.The VWAP for gas peakers (that tend to generate energy in times of high demand) is greater than the VWAP for coal plants(that tend to generate energy at a constant rate at all times)
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