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> If wholesale electricty prices are very high (as they were e.g. shortly after Russia turned the gas off) the wind generators actually have to pay the governme
by iudqnolq 3y ago
> If wholesale electricty prices are very high (as they were e.g. shortly after Russia turned the gas off) the wind generators actually have to pay the government because the contract is for the difference.
In practice this seems to be capped at zero as when the price goes negative the producers simply don't produce energy.
- tialaramex 3y agoHuh? We're not talking about when prices go to zero, we're talking about when prices are high. Suppose I'm a wind farm with a strike price of £75 and thanks to high gas prices the current wholesale electricity price is £150 per MWh. I can (and certainly will) sell my wind electricity, but I have to pass £75 of the £150 back to the Low Carbon company.
- blitzar 3y agoIn reality, when the wholesale price went to £500 they paid the government £466 and got to keep their £44.