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Green without a proper plan? Germany/Europe will be the green poster children on how not to do it. Guess who will damage the environment more in the end.
The electricity companies in the south also follow well the business strategy of privatising the benefits and socialising the losses. The water level in the lakes in the south are too low especially considering the difficult winter to come, yet they sometimes empty them to export to Scotland to make money now.
It’s a bit annoying but at least I get push notifications when the price is very high or very low.
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…
It is possible Czech producers sold energy to Germany for a very low price a few years ago on a let's say 5 year contract which is still valid. Now Czech Republic needs to buy at a high price the energy from Germany because it cannot meet its own demand. Again, this is speculation on how that could work.
Green without a proper plan? Germany/Europe will be the green poster children on how not to do it. Guess who will damage the environment more in the end.
No matter what magic plan anyone comes up with it would take years to implement. Nuclear, more insulation, hydrogen, new gas fields. It's almost winter already.
Source?
Remember that, while prices have soared, electricity generation has not become more expensive. The "electricity crisis" is a crisis for European consumers but a massive windfall for producers. This is a market failure - not an electricity failure.
Can anybody explain why that is? Why a country that generates 99+% of its own electricity like UK is seeing price increases? Everybody blames the war, but AFAIK UK imports 1% of its gas from Russia, and its electricity is generated locally, so why are prices increasing? I would expect grain and wheat to increase 500%, not power.
Earlier quoted context omitted.
I have no clue about Czechia but that’s basically happening in Austria. Austria mainly produces energy from renewables which did not go up in price buy since the price on the exchanges is determined by the most expensive source we still pay exorbitant prices. Producers are making all the money right now.
which would give more producers (and wana-be-producers) the incentive to invest in renewables to take a piece of that profit pie. Doesnt seem like a bad outcome tbh.
Earlier quoted context omitted.
> 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.
OK, what's the truth then? I am not an expert on this, though just today I saw some LinkedIn post of some trader explaining merit price on energy market and in the chart the nuclear power was two orders of magnitude cheaper than gas/combined power but the final price was at the level of gas/combined power.
To put this into context: https://tradingeconomics.com/commodity/eu-natural-gas I call this “the Greta curve”.
Current spot price in northern Norway is €10.16/MWh, while it is €745.08/MWh in southern Norway (73x the price), largely due to limitations in transport networks between the electricity zones. The price in the northern zone is so low that some hydro plants have stopped producing electricity as they would be losing money at the current price level. https://www.skandiaenergi.no/dagens-spotpriser/ Electricity Maps has a…