> Ed Miliband’s net zero targets are facing fresh scrutiny after Britain was found to be paying the highest electricity prices in the developed world.
> New data published on Tuesday showed the price paid by UK industry for power was 63pc higher than in France and 27pc higher than in Germany.
> Britain is also the second-most expensive country in the world for household electricity, with billpayers paying twice as much as those in the US.
https://www.yahoo.com/news/articles/britain-paying-highest-e...
https://www.bbc.com/news/articles/crkep1vx3mro
The price for wholesale electricity is set by a bidding process, with each generating company saying what it would be willing to accept to produce a unit of electricity.
Once built, the cost of generating power from renewables is very low, so these typically come in with the cheapest bid. Nuclear might come next.
Gas generators often have the highest costs, because they have to buy gas to burn, as well as paying a "carbon price" - a charge for emissions.
The wholesale cost is set by the last unit of electricity needed to meet demand from consumers. This means that even if gas only generates 1% of power at a given time, gas will still set the wholesale price.
Economics 101: prices are not set by what goods cost to create + markup. Prices are set by how much people are willing to pay.
Citation needed.
How many is "many days"? Gas is still used for at least one fifth of electricity. https://app.electricitymaps.com/map/zone/US-CAL-CISO/5y/mont...
Even in Hawaii where they import petroleum that’s 2-3x the cost of natural gas per kWh, fuel is only 50% of the cost. Distribution makes up the rest and usually upwards of 80% on the mainland.
Doesn't this mean that solar/wind are insanely lucrative?
Also, this would mean that in order to really bring the price down, gas needs to be taken out as a source. But gas is typically the source that balances the grid because its output can be changed quickly. So price wise, you might get a drop but you would lose your ability to react quickly to fluctuations in demand
Of course we’ll need a way to resolve fluctuations both rapid and slower. Rapid fluctuations are handled by pumped hydro and increasingly by batteries.
The slow fluctuations (day/night all the way to summer/winter and good/bad weather patterns) are much trickier, I think it’s still unclear how well handle them, but it will certainly be partly handled by having an excess of renewables, though we’ll likely need some other solutions too, nuclear is probably one of them.
- England is 90% renewables
- Renewables are a really cheap source of energy.
- England has very high energy prices.
And the obvious conclusion is that someone is lying. It's eroding support for renewables among those that don't have time to investigate why the spot price of gas sets the overall energy price.
Headlines like this do nobody any favors. The problem with renewables is that you cannot run a grid on renewables alone. Many days will have an abundant oversupply, like the day shown. Many days will not. Consumers are not tolerant of brownouts in the west. We need pump storage hydro, we need massive improvements to the transmission system, and we need battery storage plants (in that order).
Its fine to celebrate days of high renewable GW output, but people get out the GW Bush 'mission accomplished' banners a little early. The generation is the cheap and easy part. The rest is expensive and slow and needs way more focus than it's getting if we ever want to make progress in the west (China is already figuring it out)
Milestones like the one here are notable and interesting to most people!
mytailorisrich•1h ago