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Wouldn't this be affected by the EU principle of paying energy at the highest cost of production? [0] Unless the power plant would be able to flood the rest of
by vladvasiliu 4y ago
Wouldn't this be affected by the EU principle of paying energy at the highest cost of production? [0]
Unless the power plant would be able to flood the rest of the EU grid with cheap power to the point that the more expensive plants would be turned off, how would this prevent the price going up?
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[0] https://www.euronews.com/my-europe/2022/08/09/watch-heres-how-the-price-of-electricity-is-set-in-the-eu https://www.euronews.com/my-europe/2022/08/09/watch-heres-ho...
- belorn 4y agoIn the south of Sweden there is a general shortage of energy to the point where reserve energy operators have to jump in to supply energy. Those are basically the most expensive energy production you can have. In addition there is a speculative market so available energy production can be bought at one price point and then sold at a higher, making the speculative provider a even higher "cost of production". If however there is a energy surplus in a region then two things happens. Reserve operators don't need to be used, and the speculative market risk holding energy that they can't sell, thus forcing lower prices.