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> ... and introduce 'energy zones' that get increasingly more expensive as you approach Denmark. > the utility companies get more money from selling that abroa

• mantas 2y ago
  Electricity free market actions use a strange pricing scheme. Net puts out request for X amount of electricity. Providers bid. Then everybody in gets paid same price as the highest bid that made it in. Cables connecting zones (or countries) are limited and move only part of the cheap electricity bids to the next zone. Thus more expensive bids make it raising the price. And there's a cascading effect how cheap energy gradually gets more expensive. There's a live europe-wide electricity price map showing network events as well. It's very interesting to see how prices grade. And how big difference shows on one side if some connection between regions is down. Local example here in Lithuania. We have quite fragile connection to Poland which seem to require a lot of maintenance for some reason. If Germany's renewables are doing good and link goes down, our energy prices go up. But if renewables are off and Scandinavian hydros are doing great, then same link going down means very cheap energy here...