Comments on: Lots of Solar Power May Reduce, Not Increase, Electricity Prices

By: Bob_Wallace

Bob_Wallace — Mon, 15 Jul 2013 17:31:00 +0000

Why was there such a large spread between German wholesale and retail prices well before renewables came on the scene?

How much of the current German retail price of electricity is attributable to solar FiTs?

By: Nico

Nico — Mon, 15 Jul 2013 17:08:00 +0000

It’s important to differentiate wholesale power prices and retail prices – Germany’s wholesale prices have been forced right down, but someone still has to pay for all the solar FiTs, and that’s on retail prices (residential consumers) which are among the highest in the EU.

We also need to be clear about the challenges to power markets this effect is having – many countries, Germany included, are having to introduce capacity markets in order to maintain security of supply. This puts large question marks over the future of competitive power markets in countries with large RE penetration – largely unanswered for now, with increased regional integration, storage and demand response all options that could be alternative to the current drift to reregulation.

By: Zachary Shahan

Zachary Shahan — Sun, 20 May 2012 13:44:00 +0000

Definitely a scary thing… for those industries.

Which is why they’re dumping as much money as they can into policymakers who can delay the inevitable. (And screw countless people and generations in the process.)

By: Zachary Shahan

Zachary Shahan — Sun, 20 May 2012 13:43:00 +0000

Exactly.

By: Ross

Ross — Tue, 15 May 2012 21:30:00 +0000

It’s a bit of a double whammy for the poor old world power people: kills the business case for new legacy power and plays havoc with the return on their existing dirty investments.

By: Bob_Wallace

Bob_Wallace — Tue, 15 May 2012 17:34:00 +0000

Put the cost reducing power of solar together with that of wind and it’s clear that new nuclear and new coal are dead ducks.

Last night the price of electricity dropped below $0.00/kWh on the ERCOT grid due to lots of wind generation on line.

http://www.ercot.com/content/cdr/html/20111014_real_time_spp

The wind farms still made a bit of money via their PTC subsidy, but coal and nuclear had to sell at a loss. Loosing money at night and having lucrative peak markets destroyed by solar has got to hurt.

Now we need some affordable storage….

By: Ross

Ross — Tue, 15 May 2012 17:14:00 +0000

This story is one to bookmark because it’s an example of how when the market is liberated from special interests the old dirty power sources will be replaced by cheaper, cleaner renewables.

The are right to be scared. Adapt or die.