Re:Day ahead electricity prices for EU
by seydor on Saturday August 27, 2022 @12:40PM
(#32620752)
that would work only if non-gas sources generated enough so that gas is not needed at all. As it is right now, solar producers are getting a bonanza in profits because they are being paid at exorbitant prices. At this level, they have no incentive to ramp up production to remove gas from the equation.
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There's no single "they" for "solar producers". No matter what the existing producers do, even if they would all illegally collude, the current prices make it attractive for individual households to install solar panels and thus add new solar capacity.
Re:Day ahead electricity prices for EU
by candiodari on Saturday August 27, 2022 @01:29PM
(#32621177)
> At this level, they have no incentive to ramp up production
In a monopoly situation, yes. Luckily there is competition, and at this level their competition has a great incentive to ramp up capacity. Which, frankly, is going to make them ramp up production so they can capture a bigger piece of the market when the situation isn't quite as ridiculous as it is today anymore.
If I'm making $10 a day from my solar panel, so after 30 days I'll make $300. Job done.
It instead makes sense for me to buy a new second panel for $100 after 10 days and then I can make $20 a day, then 5 days later buy a 3rd.
30 days into this I'll have made $45, and be making $30 a day instead of $10.