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Had. Now we have the "Merit Order Principle". Cheap energy (i.e. renewables) are used first but the price is determined by the most expensive energy source runn
by leftbit 1y ago
Had. Now we have the "Merit Order Principle". Cheap energy (i.e. renewables) are used first but the price is determined by the most expensive energy source running. (See https://de.wikipedia.org/wiki/Merit-Order https://de.wikipedia.org/wiki/Merit-Order)
So if you're running a solar park you have production costs of about 5ct/kWh. But if there's also a gas plant running you get maybe 20ct/kWh. Instaprofit.
https://de.wikipedia.org/wiki/Stromgestehungskosten https://de.wikipedia.org/wiki/Stromgestehungskosten
- loehnsberg 1y agoUniform pricing creates huge windfall profits for those cheap generators too, which incentivizes more investment. I‘m not saying there‘s collusion but the incentive to keep a gas turbine in the stack is clearly given.