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It sounds like a crazy system. But wouldn't it also make deploying renewables there wildly profitable? Sunlight is free but you get paid like you burned natural
by triceratops 9mo ago
It sounds like a crazy system. But wouldn't it also make deploying renewables there wildly profitable? Sunlight is free but you get paid like you burned natural gas.
- blibble 9mo agothat is the idea but under the cfd mechanism the treasury takes the excess over the strike price
- PunchyHamster 9mo agoIt does. It's basically scamming taxpayer into funding private companies renewable investments.
- triceratops 9mo agohttps://news.ycombinator.com/item?id=46982694 https://news.ycombinator.com/item?id=46982694 It's not a scam. Interesting your mind went there though. We know what you're about.
- 7952 9mo agoRenewables are heavily effected by capital costs. So a renewable energy scheme selling at wholesale prices may sometimes be ridiculously profitable. But it will also have higher interest rates that could wipe out that benefit for the developer. The more successful renewable energy is the lower the average wholesale price is likely to be. And the temporary peaks are likely to correlate with times where the weather conditions will reduce renewable output. All these reasons make CfD's positive for both consumers and developers. The fact that schemes can be developed outside of this just shows how good the technology is.
- benj111 9mo ago"sunlight is free" This is the UK btw...