What is marginal power?

Marginal power refers to the additional power or energy generated by an incremental increase in the production capacity of a power plant or energy system. It represents the change in output resulting from a small change in input or operational conditions. In the context of electricity markets, marginal power can influence pricing, as the cost of producing the last unit of electricity often sets the market price for all units sold. Understanding marginal power is essential for optimizing energy production and managing demand effectively.