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Providing a set amount of electricity 24/7 of course has a cost as well as setting up renewable sources. But especially solar cells have only fixed/maintenance
by _ph_ 5y ago
Providing a set amount of electricity 24/7 of course has a cost as well as setting up renewable sources. But especially solar cells have only fixed/maintenance costs, but no "fuel" cost per amount of electrictiy produced. This leads to a price for the electricity, which mostly has to be reconed up to the point where the grid demands are satisfied. Any excess electricity is literally free and can be repurposed, as long as that purpose can utilize intermittant supply.
If you look at the German electricity prices at the power exchange, high renewable output correlates with very low prices. The amortized costs of renewables by now are distinctly lower than for fossil fuel and of course nuclear power. While large investments have to be taken, a further expansion of renewables should lower the electricity price in Germany (and the rest of Europe via trade)
Current prices are very high, because of gas shortage. I don't have a clear idea how it all started, but it seems there was a too large dependency on the spot markets vs. long term contracts, and now the spot markets have skyrocketed. There are political aspecst too - Russia for sure could extend their deliveries, but barely deliver what was contractually agreed upon.
It didn't help, that several French nuclear plants have been shut down without warning as safety problems were detected and have now to be fixed. Finally, the weather has been not so friendly for renewables in the last year, for the first time in many years, Germany had a small decrease in production year over year.