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It doesn’t matter whether the production of renewable energy is cheap as long as it cannot be produced on demand. A lot of people seem to think that market pri
by cbmuser 5y ago
It doesn’t matter whether the production of renewable energy is cheap as long as it cannot be produced on demand.
A lot of people seem to think that market prices are determined by production costs but that isn’t the case.
Market prices are determined by supply and demand and that’s where renewables (except for hydro power) are very bad at.
This is why Germany has the highest electricity prices worldwide. Because it has a large share of wind and solar meaning that a large portion of the electricity is not supplied on demand:
> https://www.globalpetrolprices.com/electricity_prices/ https://www.globalpetrolprices.com/electricity_prices/
So stating that producing renewable electricity is cheap is rather irrelevant as long as the electricity cannot be produced on demand.
- brainless 5y agoI agree with pricing being dependent on supply and demand. But I do not think Germany is a good example. I love Germany for many reasons and have lived there but pricing is not one of these reasons. Cellular, home Broadband, 4G LTE, Bank fees, that weird radio tax, and just about everything that is run by corporations is expensive compared to many other nations. Are energy prices higher in every country that has more renewable sources than not?
- akvadrako 5y agoThere is a decent correlation. See the 4th image: https://euanmearns.com/the-causes-of-the-differences-between-european-and-us-residential-electricity-rates/ https://euanmearns.com/the-causes-of-the-differences-between...