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I've read somewhere that Czechs (day ahead price of 463EUR/MWh) produce electricity at 0.1EUR/MWh, then sell it to an exchange in Germany and buy it back for the "market" price. Somebody over there is getting extremely rich for no reason and I am wondering why nobody is doing anything about it...
Best not to believe everything you read :)
I've read somewhere that Czechs (day ahead price of 463EUR/MWh) produce electricity at 0.1EUR/MWh, then sell it to an exchange in Germany and buy it back for the "market" price. Somebody over there is getting extremely rich for no reason and I am wondering why nobody is doing anything about it...
That's how a market works. You say "Czechs" but it's Czech producers and Czech consumers (respectively) making those transactions. Where the market is situated is irrelevant. If you're making electricity that cheaply right now you are indeed getting rich, and so you should. The market is what is doing something about it. Prices will moderate over time as inefficient producers are pushed out and as consumers reduce th…
Electricity isn't optional. "The market" didn't make water, or housing, or waste, or healthcare, or telecoms, etc, cheaper once privatized. In fact, it didn't make energy cheaper in the countries that privatized it.
Source?
I've read somewhere that Czechs (day ahead price of 463EUR/MWh) produce electricity at 0.1EUR/MWh, then sell it to an exchange in Germany and buy it back for the "market" price. Somebody over there is getting extremely rich for no reason and I am wondering why nobody is doing anything about it...
> why nobody is doing anything about it > I've read somewhere Before wondering why someone, somewhere is not doing something, confirm that the thing is actually happening in the first place.
Let's be real though, the society will fall apart before energy costs become a big problem for people working in tech.
I've read somewhere that Czechs (day ahead price of 463EUR/MWh) produce electricity at 0.1EUR/MWh, then sell it to an exchange in Germany and buy it back for the "market" price. Somebody over there is getting extremely rich for no reason and I am wondering why nobody is doing anything about it...
You must have omitted something in your example because it makes no sense. >Czechs produce electricity at 0.1EUR/MWh so far so good. Now you have -0.1EUR and 1MWh of power. >then sell it to an exchange in Germany suppose the market price is 400EUR. after selling it to an exchange you have 399.9EUR and 0 MWh of power >and buy it back for the "market" price. so you buy it back at the market price. Now you have -0.1EUR…
Earlier quoted context omitted.
Not Germany, they have single price zone which is absolutely insane. Denmark has two and is much smaller.
It makes sense for Denmark to have two, as each of them is connected to different larger markets and have limited interconnection between each other.
I've read somewhere that Czechs (day ahead price of 463EUR/MWh) produce electricity at 0.1EUR/MWh, then sell it to an exchange in Germany and buy it back for the "market" price. Somebody over there is getting extremely rich for no reason and I am wondering why nobody is doing anything about it...
I've read somewhere that Czechs (day ahead price of 463EUR/MWh) produce electricity at 0.1EUR/MWh, then sell it to an exchange in Germany and buy it back for the "market" price. Somebody over there is getting extremely rich for no reason and I am wondering why nobody is doing anything about it...
That would almost certainly be the price per kilowatt-hour, not megawatt-hour, which would make a MWh ~100EUR. Anybody that is getting rich on the energy markets right now is either because they're better at betting on future energy prices than their rivals, or they have the ability to produce electricity when demand for it is extraordinarily high (both of which would qualify as 'a reason').
EDIT: Just found out production costs from another source:
Dukovany Nuclear Power Plant - 20.31EUR/MWh
Temelin Nuclear Power Plant - 34.52EUR/MWh
by that measure Swedish datacenters should be oversubscribed
AWS is in SE3, where the electricity is tens to a hundred times more expensive than for Facebook in SE1.