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guidedlight | 18 days ago

Doesn’t gas generators set the market price 98% of the time in the UK?

They need to fix their market pricing mechanism before the public benefit from cheaper renewable energy sources.

discuss

order

jl6|18 days ago

It is important to realise that the current pricing mechanism is not an accident, and has some non-obvious benefits that need to be weighed against the obvious drawbacks. Clearly other mechanisms exist, which might solve the obvious drawbacks, but it is a choice of tradeoffs rather than a simple fix.

mjw1007|18 days ago

Not any more, according to this article you're commenting on, no.

nialv7|18 days ago

the comment you are replying to is talking about marginal cost pricing, which wasn't addressed by this article.

adrianN|15 days ago

The more often you have renewable surplus the rarer you need to fire up the gas turbines.

Crosseye_Jack|17 days ago

One could argue that it’s the “big boys” favour to build out “just enough” renewables in places that are further away from demand, so that gas still sets the price even if it’s just a fraction of what’s actually being used.

Min/max profits, but that would be crazy talk right! I’m sure the large energy producers have my best interests at heart really.