Market price is based on the price of the most expensive megawatt produced. The price moves up and down to balance production with consumption, a necessity for

Market price is based on the price of the most expensive megawatt produced. The price moves up and down to balance production with consumption, a necessity for every grid, and producers set prices at which they are willing to inject quantities. The current problem is that in europe a lot of the electricity is made by gas plants and those plants are seeing their costs rise. They therefore increase the price at which they are willing to inject capacity, and that means the market price moves up because that power is needed to satisfy demand. Gas plant operators are not making a lot of profit. Because every party injecting power at market rates (some of it is actually locked up in long term contracts) is paid the market rate, those not using gas to produce power are actually the ones making record profits. Wind is literally making windfall profits. There are talks of having an excess profit tax because right now governments are going into debt to finance energy subsidies that line the pockets of wind and nuclear operators (and of vladimir putin).