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deepbluev7 | 1 year ago
Even with those 3-5 days of high prices, the average price is expected to be 30% lower this year compared to last year. This is also reflected in the prices consumers and the industry have to pay. Consumer prices are still trending downwards and the industry price has been very close to the lowest prices over the last 10-20 years, especially if you consider inflation (but only if you had to pay the EEG before).
The prices also only jumped about as far up as to match the current gas prices, which is somewhat expected if there is no wind or solar and the missing energy has to be produced by burning gas. This is not what will be the case long term. Germany is almost doubling the installed battery storage capacity every year and has been keeping that up for almost a decade at this point: https://www.energy-charts.info/charts/installed_power/chart....
This trend is likely to continue and will smooth out a few days of no renewables soon. Additionally so far biomass has been subsidized without it having to follow the load. This is expected to change this (there was at least one law proposed, don't know if that was decided on yet), which would make Germany follow a lot closer to how Denmark seems to operate its grid.
The big problems in the German energy grid are, that there is not enough transfer capacity, not enough storage and not enough renewables in the grid yet. More renewables make storage more attractive, but earlier conservative governments killed both solar and wind installations, because they wanted to focus on nuclear, only to then reverse course a short time later. Solar was on an exponential trend until the government implemented policies, that basically killed expansion around the 2012 time frame: https://www.energy-charts.info/charts/installed_power/chart....
A similar story applies to wind power, where additional regulation regarding the distance of wind turbines to living spaces made it almost impossible to build new wind turbines (around 2017).
Similar policies also prevented installation of new power lines or at least significantly delayed their installation.
Had conservative governments not implemented those, we would likely be at 100% renewables already most of the time in Germany and the average price for electricity would be significantly lower. But the distraction of nuclear and then gas and coal by conservative governments put us into the position we are in today. A completely renewable grid is possible and not too far off for many countries in the EU and elsewhere, but you need to actually build the infrastructure for it instead of sabotaging it.
Restarting reactors won't help in that regard. The few reactors that were still in the grid in 2022 did not reduce the record electricity prices that year. (They would also not have helped when they were at their peak with about 30% of the grid. Germany stopped constructing nuclear plants in the 80s after all and nuclear has been in a decline since then, even though officially that was only decided in 2002 and then 2011.) And the prices continue falling since the last nuclear plants were shut off in 2023. Today renewables are the cheapest source of energy. Storage is still a problem, but battery prices still half every few years, which makes battery storage economical today already and only cheaper in the long run.
For all intents and purposes Germany is doing ok in renewables. It could be a lot better, but there is a clear plan and if conservative governments don't reverse course next year (again) as well as stop sabotaging renewables in local governments (like Bavaria), prices will soon be the lowest they have been in 2 decades. This is backed up by plenty of data and studies. Nuclear plants are cool in theory, but they can't compete in price in the long term and trying to go back to them would be the same mistake the German car industry made, when it tried to push ICE cars and is now getting steam rolled by China in the EV market. Or when Germans invested into gas pipelines instead of renewables, because it was cheaper at the time. Germany can't afford to make plans only for the next 2 years, it needs to have plans for the next few decades.
groby_b|1 year ago
No, I want energy policies that account for the need to support a reliable base load in all circumstances. The prices are an expression that got fucked up. And that baseload specifically includes heavy industry, which has limited ability to rely on batteries alone.
Simply, "most of the time" is insufficient. That means we need an answer for what happens until we reached the "next few decades" state.
This is not advocacy to replace renewables with nuclear, but to a) do the baseload thing, now, and b) cut the LNG cord, which is a very tenuous tether to hang yourself off.
I don't think you and I are disagreeing much about the long term (though questions around battery sustainability need answering for the long term baseload case). But there's need for fairly immediate action. Germany is massively deindustrializing right now, and it's due to energy supply issues, at least in part.
Nimitz14|1 year ago
Regardless I'll be curious to see whether what you predict will happen (energy storage becomes enough to deal with bad weather periods). Doesn't seem smart though to rely on the sun in a relatively cloudy country.