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If that were true then we wouldn't see large wind/solar regions where the average cost during this winter were at $0.3/kWh or above. Wind and solar did contribu
by belorn 4y ago
If that were true then we wouldn't see large wind/solar regions where the average cost during this winter were at $0.3/kWh or above. Wind and solar did contribute a lot, but it was quite rare that they hit 100%. Instead it was gas prices that controlled what the energy prices was. It was this fact that resulted in many country implementing a roof of how much profits those renewables could earn, redirecting those profits in order to pay the bill for more fossil fuels.
Sweden is a prime example of a country that is paying the cost of stabilizing the grid for the rest of the continent. They could have had one of the cheapest energy grid in EU thanks the the large stable production from nuclear and hydro, but because of how the EU system is setup the opposite occurred. The result is the highest inflation rate in EU coupled with a significant hit to the economy. Germany in contrast is using the profits they historically gained by using cheap natural gas from Russia and injected billions to their industry in the form of energy subsidizes, sheltering their economy from the same fate. Who cares if the energy prices reaches well above $1/kWh if the government foot the bill?
Massive subsidizes and huge difference between marginal cost and actually price is not a free market. There is nothing free about it.