I mean, elecricity is fungible, and demand is relatively inelastic. Why on earth would a solar farm sell it to me at a much lower price then the gas powered plant?
It's much better than coal. Most places don't have enough hydro, biogas or geothermal, and nuclear ran out of favour. There is currently nothing else that can deliver a base load.
For sure. I understand perfectly well what led up to this. Nuclear also ran out of rivers to cool them in France. Now we will see a fast transition instead of slow and steady transition away from gas. It will be "interesting".
Basically the cost of electricity should be the average cost of the network's generators. Or, as it is hard to calculate, the operating cost of the most expensive generator we have to put online. Peakers (pulsed coal and gas) are the most expensive to operate, so the price of electricity is based on their costs.
That we use gas and coal for baseload, however, is the dumbest thing EU (and German) legislation put us through.
And so? I need a KW of power for the next hour, I'll buy from whoever will sell it to me at the cheapest price. Why would anyone sell it to me at less than the highest price (gas) - 0.01€? As long as demand is inelastic I believe that it's unavoidalbe that price will settle up to the price of the most expensive unit sold.
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I mean, elecricity is fungible, and demand is relatively inelastic. Why on earth would a solar farm sell it to me at a much lower price then the gas powered plant?
Often the markets for renewables, especially wind, are set up like futures markets so the price the generator receives is less elastic. e.g. Contracts For Difference: https://www.emrsettlement.co.uk/about-emr/contracts-for-diff...
Normally this operates as a subsidy, but now it's returning money to the taxpayer: https://www.current-news.co.uk/news/cfd-costs-to-be-paid-bac...
Gas should have been phased out a long time ago, for geopolitical and environmental reasons.
It's much better than coal. Most places don't have enough hydro, biogas or geothermal, and nuclear ran out of favour. There is currently nothing else that can deliver a base load.
For sure. I understand perfectly well what led up to this. Nuclear also ran out of rivers to cool them in France. Now we will see a fast transition instead of slow and steady transition away from gas. It will be "interesting".
A dependency on russian gas should never have been established.
Coz the solar farm cant match supply to demand whereas a gas plant can.
Yes, that's what GP said (or what i understood).
Basically the cost of electricity should be the average cost of the network's generators. Or, as it is hard to calculate, the operating cost of the most expensive generator we have to put online. Peakers (pulsed coal and gas) are the most expensive to operate, so the price of electricity is based on their costs.
That we use gas and coal for baseload, however, is the dumbest thing EU (and German) legislation put us through.
And so? I need a KW of power for the next hour, I'll buy from whoever will sell it to me at the cheapest price. Why would anyone sell it to me at less than the highest price (gas) - 0.01€? As long as demand is inelastic I believe that it's unavoidalbe that price will settle up to the price of the most expensive unit sold.