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It's likely subsidies that still make it profitable to produce even at negative prices.
by cinntaile 3y ago
It's likely subsidies that still make it profitable to produce even at negative prices.
- patall 3y agoIt is long term contracts, not subsidies (which obvoliously are a type of long term price gurantee in most cases) alone. From what I read from Germany before, local grid shortages may further contribute. Since the price is constant in one grid zone but demand may be higher in some nodes, local variable producers may have to be online even though it costs them money to generate.