The European Tribune is a forum for thoughtful dialogue of European and international issues. You are invited to post comments and your own articles.
Please REGISTER to post.
My next step is to discuss the dispatch curve, remind everybody that market prices of electricity are driven by marginal costs which are low for nukes and wind, and high for gas-fired plants (and linked to the price of gas). I make two further points which set gas-fired plants from wind farms: gas-fired power plants are largely price makers: it is their cost which drives market prices, and thus gas-fired power plants are pretty sure to always receive revenues close to what they need to cover their costs; wind farms are price takers, but their effect on the system is to bring prices down, as they displace more expensive plants when wind blows (that's what is called the "merit-order effect", which I've discussed extensively in the past in my wind series); I take this to the logical conclusion: the more gas you have in the system, the higher the price of electricity on the market will be; the more wind you have in the system, the lower the price of electricity on the market will be.
My next step is to discuss the dispatch curve, remind everybody that market prices of electricity are driven by marginal costs which are low for nukes and wind, and high for gas-fired plants (and linked to the price of gas). I make two further points which set gas-fired plants from wind farms:
I take this to the logical conclusion:
I have been thinking a bit about this and how to argue in Sweden (where gas is almost non-existent). What I wonder is how the picture changes if gas is replaced by hydro. Hydro shares the cost structure of wind and nuclear but the market making powers of a flexible power source.
Is it gas flexibility that allows them to charge rent or its high cost that drives high prices? Sweden's finest (and perhaps only) collaborative, leftist e-newspaper Synapze.se
by Frank Schnittger - Feb 7 2 comments
by Oui - Feb 4 47 comments
by Frank Schnittger - Feb 2 8 comments
by Frank Schnittger - Jan 26 3 comments
by Frank Schnittger - Jan 31 3 comments
by Frank Schnittger - Jan 22 3 comments
by Cat - Jan 25 63 comments
by Oui - Jan 9 21 comments
by Oui - Feb 78 comments
by Frank Schnittger - Feb 72 comments
by Oui - Feb 447 comments
by Oui - Feb 323 comments
by Frank Schnittger - Feb 28 comments
by Oui - Feb 2115 comments
by Oui - Feb 16 comments
by Frank Schnittger - Jan 313 comments
by gmoke - Jan 29
by Oui - Jan 2736 comments
by Frank Schnittger - Jan 263 comments
by Cat - Jan 2563 comments
by Frank Schnittger - Jan 223 comments
by Oui - Jan 2110 comments
by Oui - Jan 21
by Oui - Jan 20
by gmoke - Jan 20
by Oui - Jan 1841 comments
by Oui - Jan 1591 comments
by Oui - Jan 145 comments