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For a very long time now the basic premise has been to go to the largest connected market that exist and buy from whoever sell energy at the cheapest price. Whe
by belorn 5y ago
For a very long time now the basic premise has been to go to the largest connected market that exist and buy from whoever sell energy at the cheapest price. When nations want to encourage more renewables they add subsidies in hope that this will enable some companies to deliver a product onto the market that has a lower sticker price. In some cases they offer to pay the subsidies as a bonus on top of the market price, thus enabling companies to lower the sticker price below that of competitors.
This system works great if you want to optimize for price. Even if a nation want to sell cheap in order to fund an invasion force, the buyer can continue as before and just buy based on the price. Similar for carbon emissions, as the buyer doesn't feel responsible for the subsidies. If there is an offer on the connected market then the buyer can buy it.