Note that "gas" in this context means natural gas, not gasoline
As noted in the methodology below, they are measuring the gas-implied level as the marginal running costs of a combined-cycle gas turbine plant: the price of the natural gas necessary to generate a given amount of electricity, plus the cost of the necessary carbon credits to burn that natural gas. Then they compare that to the actual electricity price
> Note that "gas" in this context means natural gas, not gasoline
What's up with Americans consistently calling things "wrong" like this? "Gas" isn't even the right state of matter for the subject, nor is "football" actually a sport where the ball is mostly for the foot, almost like things are intentionally named bad.
"Gas" is short for "gasoline" which means "gas oil". That is a perfectly cromulent name for a liquid.
"Football" is a different game in the US because it arrived there from England in the 19th century when carrying the ball was allowed. In England the sport eventually split into distinct sports: association football (aka soccer) and rugby. In America they evolved the game independently but didn't change the name.
Because changing a name that's been in use for decades is very confusing and unnecessary. A rose by another name etc.
The full names of the two rugby codes are "rugby union football" and "rugby league football". So Americans aren't alone in their cavalier use of the word "football".
What's up with the British calling refined gasoline "petrol"? It's not even an abbreviation for the word, it's a totally different material? You don't go calling refined aluminium "bauxite", but you do call gasoline "petrol".
We're both wrong. It's a liquid at room temperature, and it's called not petroleum.
Seems cromulent to me. One of the common meanings of essence is "a product of distillation" (compare e.g. essential oils - oils won through steam distillation). And gasoline is won through fancy distillation
This energy scam has been going on for more than 30 years in Europe and the UK.
The former Economic minister and professor Yanis Varoufakis explains [1].
My Fiberhood cooperative has a solution: the Enernet smart grid where you pay $0.01 per kWh. We wire up one in three houses or more in a neighborhood with power routers. People buy and sell only solar electricity from panels in the neighborhood, from batteries and from every ev charging station on every parking spot in the neighborhood and from every parked ev. Each participating house saves $2000 to $5000 per year for 30 years or more[2]. You also get free 25 Gbps internet. You heat your house with a heatpump or cool the house with an ice storage ac powered only by solar. If the cooperative makes any money the share the profit with all the members or they vote to buy more solar panels and batteries. The cooperative gives loans to houses that can not afford their own panels.
People seem to have trouble understanding how commodity markets naturally price their goods but the whole point of this website is to show that electricity prices are finally decoupling.
edit: I didn’t watch the videos, I don’t have time first watch a video and then to dissect bullshit from truth.
But the solar electricity is still overpriced and taxed. People pay several times more for solar electricity from the grid than what they get if they sell to the grid.
It's not overpriced. If it was, the grid operator would be raking in massive profits because they're selling way above cost. In reality grid operators have small margins, this indicates there is no overpricing.
Do you get paid less for power fed to the grid than power sold at retail? Yes. Because they're different things. You get say 5 cents for a kWh fed back to the grid, while you pay more like 25c. But guess what? Wholesalers also get 5 cents to sell to the grid. It's just that there's an additional 20 cents in grid operation and taxes for a retail price.
Taxes you can't avoid, it's not a 'scam'. It's money you pay that goes into public funds and returns to the public, and is spent by people you can vote to elect to represent you.
Grid costs also aren't a scam, they're just a cost of doing business. Again, profit margins are small, so they're pricing based on cost, not based on scam.
And it's all entirely optional. You can just install batteries yourself. You can do whatever you want. You don't have to use the grid. But surprise surprise, there's no reason to think that a small network is on average cheaper than a big network. The bigger the network the easier it is to share storage capacity and offload excesses from one place to another. It's the reason most states and countries try to build interconnectors to even build international grids, and why islands like Cyprus that don't interconnect and have small markets have the highest electricity prices. It's why anyone who builds a home and has the choice to connect to an available grid or not, does so. And why land and homes in locations without grid-access are valued less, because they're more expensive to set-up.
The price for grid power ought to be somewhat higher than the the grid operator(s) pay at the place where the power is delivered into the grid plus their own costs for running the actual grid. So what do you think is a fair price for building/maintaining/running the grid?
The grid is a nationwide electrical circuit with requirements to connect to most buildings, and with demanding uptime and safety requirements. How much ought building and maintaining that to cost?
If you are selling to the grid, there is probably over-supply. Prices are driven by supply and demand. If you want to avoid selling at lower prices and buying at higher, try and get a battery. Check ecoflow to get an idea of the costs.
Ecoflow is a good example of overpriced American tech. I payed $1500 for a 2 kWh battery. Our Fiberhood coop sells a 16kWh battery for $1800. Prices in China are lower still.
You can sign up by becoming a member of the Fiberhood cooperative for free. Send an email to Fiberhood at icloud dot com. We must have your address and map location link or Google map address code so we can draw maps and make a website for your neighborhood to sign up and form an Enernet.
We will do a small survey and put up a detailed map of your neighborhood (like openstreetmap, see the slide in this talk [1]). We hand out door to door flyers and organise a weekend barbeque neighborhood party where everyone can come see how the cable between neighbours goes roof-to-roof, window-to-window or garden-to-garden between power routers. See our cost price bifacial solar panels and the large batteries.
We find that within a few weeks a few hundred people signed up for the cooperative and we start installing the first 10 houses. Most people invest in solar panels and batteries at wholesale prices installed by volunteers. Others get a loan to pay for this. You wind up getting payed for the panels you bought or paying around 1 dollar cent per kWh, saving a few thousand dollars per years for decades.
In the US the Rocky Mountain Institute and its founder Amory Lovins describes this as 'grid defection' and it happens on a large scale now.
Fiberhood has cooperatives forming all around the world, both rural and urban: Ukraine, Peru (near Iquitos by the Indian tribe on the Amazon River Bank, Southern Spain, Slovenia, Finland, The Netherlands, Australia.
The Fiberhood planner maps are in the first slides in the first minute of the video. We used to have an interactive zooming map of Fiberhoods for every house in the Netherlands online but now we only have them available for Fiberhood members because of privacy rules. On the maps you can see where the batteries, solar panels and power routers are located in a Fiberhood version of Google Streetview.
Yes and no, not really. There are many smart grids and more not-so smart grids around the world, but only a few are non-commercial or owned by the members.
Fiberhood is unique in that we have our own Enernet power routers (a software controlled multi-port bidirectional AC-DC-DC inverter peer to peer network) that can share large amounts of DC current, has special power aggregation to enable megawatt EV chargers in every house, battery nano-inverters that make cheap batteries last up to 20000 charge/discharge cycles, integrate (free) discarded solar panels and has a range of software defined networking options including 4 x 25 Gbps internet ports per house. Most smart grids are just a different meter and payment scheme, not a radical rewiring of the entire electricity system in the neighborhood without a commercial company or government controlling what citizens pay. Other smart grids raise the cost of grid defection, Fiberhood tech makes it possible to have abundant redundant solar energy at its cost price $0.01 per kWh, many times cheaper than national AC grid pricing anywhere in the world. The tech was made to prevent making money on energy but incentivize solving the climate crises by making Solar by far the cheapest option. Stop almost all carbon and methane greenhouse gas emissions by going 100% solar.
Please give some proof of Varoufakis lying. I always check what he claims in his books and talks and I never spotted a lie. I also check Saul Griffith and Amory Lovins talks, books and papers on factual errors and never spotten one in two decades.
Good for the Germans, in the UK we use marginal cost pricing, so consumers pay for the highest costing output regardless of how much if any they use. Means even if we get gas down to 1% well still be paying gas prices.
The reason why power prices can still decouple: Because there are more and more quarter-hours where gas plants are NOT setting the price and the marginal cost is set by renewables.
The same is happening in the UK.
> , so consumers pay for the highest costing output regardless of how much if any they use.
No, if no Gas is needed (!) for power production in any quarter-hour, the price is not set by gas.
PS: Emphasis on needed. Gas plants may still be running at a loss for whatever reason (heat coupling, special contracts), but if they are not needed to provide the power, they will have to bid at a loss, and then they will not be able to drive the price.
The irony is at the time of me writing this; gas is down to 4.6%[^1] and renewables are a whopping 88.5% and yep - the cost is based on the 4.6% of gas.
Marginal pricing is not specific to electricity in UK, that's just how commodities end up priced.
Saudis pump oil at cost of $10 per barrel. Will they sell it to you at $10? Nope. The average oil price? Nope.
Saudis will sell the barrel at the highest price people are willing to pay - the marginal price. So if the most expensive oil needed to match the global oil demand is some super expensive arctic oil project, the oil will be priced according the marginal cost of that project even if only 1% is needed.
My understanding is that it's the same here in Germany. From the website
> What does "decoupled" mean? In a gas-dominated electricity market, the marginal generator setting the price is almost always a gas-fired power plant (CCGT). That means electricity prices are structurally linked to gas prices — when gas rises, electricity rises with it. Decoupling happens when enough zero-marginal-cost renewable generation (wind, solar) pushes gas off the margin for enough hours that the annual average electricity price no longer tracks gas.
Levelized Cost of Energy for Germany's existing nuclear fleet was roughly 13ct/kwh.[1] The averaged costs (YTD) from the linked article currently stands at 9.71 ct/kwh. So nuclear in the mix would have increased the costs.
Although nuclear energy produces no carbon emissions, it is simply not price competitive with solar and wind in the western world. A culture of safety above all else made nuclear not price competitive. And it would be political suicide for regulators to relax safety given how accidents like Chernobyl or Three Mile Island are etched into the public mind.
No. Nuclear energy was at the same time very expensive and only a very small percentage of the energy production. Sunsetting the old plants had no negative impact at all on electricity prices, to the contrary, insofar as it made space for more green energy.
Compare emissions between France and Germany during dunkelflaute. Germany is frequently at the Polish levels of emissions and Poland is famous for huge emissions. Sunsetting would make sense if they could already generate enough green electricity even in bad conditions, which was not and is not the case. It was purely political decision - Germany wanted to be European hub for distributing gas from Russia (that's why tried to convince others than gas is somehow green energy).
Most definitely not true. Maybe enough area to cover current electric usage, but to truly decarbonize society a lot more renewable energy is needed - for transport, heating, iron industry, chemical industries, fetilizers etc. Massive amounts of electricity is needed unless you export your industries to china.
Why not? Germany's total energy consumption is estimated to be around 1-2 TWh/y. This could be generated by photovoltaics covering less than 5% of its land surface.
There are significant problems around rolling out that much capacity quickly enough, and I also don't think nuclear should have been shut down that hastily, but I don't think "only nuclear can cover long-term energy needs" is true in any way.
Wtf are your numbers from, but they are wrong. It's over 2200TWh per year. And it you truly want to be renewable, the numbers go up. Upcycling waste to plastics or using hydrogen to make steel is more energy intensive than using fossil fuels.
https://www.umweltbundesamt.de/en/indicator-final-energy-con...
Do you mean the nuclear power that the free market companies very explicitly said wasn't worth doing? That one? Why are we pleading the government to use a horrendously expensive technology that even the free market hates?
It's widely accepted that sunsetting nuclear energy had a positive impact on the deployment of renewables, and consequently on the longer term energy prices. It was one of the better energy policy (and environmental, and security) decisions Germany has made in the recent past.
You know that nuclear energy was heavily subsidized?
And they still don’t have a long term storage but therefore rotting barrels with nuclear waste in the interim storage facility Asse which have to be retrieved. Cost estimate around 14 billion Euros.
Merit order pricing and the fact that you need fossil peakers will make the price effect completely negligible to consumers. You are comparing the MWh price of slightly more efficient fossil power plants to slightly less efficient fossil power plants.
For me personally it did not. I was a happy Tibber costumer until recently, meaning I was charged the quarterly hour spot price per kWh. The Iran War let to a significant jump in the price during the hours when renewables were low. I switched back to a traditional fixed price per kWh plan because of the high gas prices.
Would be good to have more than a one sentence explanation of what you mean, but this is a result of low storage. In the oil market, if prices are too volatile you just stick it in a tank until they stabilize. You only get negative prices if all the storage is full, which happened to WTI once.
It is incredibly volatile. Spot prices in the day-ahead auction for tomorrow are between -39€/MWh and 201€/MWh. And that's a pretty normal amount of volatility for this time of year
Nope. They pay more than they were with the "old" energy mix of more gas and nuclear.
Telling people it could be worse isn't really something to be proud of.
I personally now have solar panels on the roof and a heat pump so we only use electricity and don't rely on gas. Germany's strategy is really beneficial to households like my own. Unless you're relatively well off or on benefits, you're losing big time. The costs are constantly increasing with people telling others to just take money (you don't have) to install some solar panels on the house (you don't own) or buy an electric car (you can't afford).
The whole point of this website is to show that the price of electricity is year-to-date 22% cheaper than it would be in a gas-dominated grid without renewables.
So I don't know where you're getting the "No" from?
You could argue that maybe investing all those subsidies into nuclear would have been cheaper, but that would have had a lot of path dependencies that simply did not pan out in Europe.
If my electricity prices are no longer linked to gas prices, I can have cheaper electricity - my provider only produces green energy. But in the past raising gas prices would have also raised my prices, regardless. So yes, regular consumers can profit from this.
> my provider only produces green energy. But in the past raising gas prices would have also raised my prices, regardless. So yes, regular consumers can profit from this.
It's one single grid. You get coal, nuclear, wind, solar, and everything else. If you buy from a provider, you get that mix.
Well, the electrons arriving in your home will the same as your neighbours, regardless of which supplier you choose. But by choosing a different supplier you can steer which energy sources will be used to feed that grid, so it still makes a difference, just not exactly where you live.
What if the whole point of the strategy was to incentivize households to become more like yours?
An energy transition isn't just some big centralized state planned enterprise. It's also the sum of people putting up their own solar (on the balcony if they're renters!) etc.
An 800W plug-in solar system for your balcony can be had for 200 euros these days, breakeven is super quick.
Nice! This is the first time i see anyone providing a quantitative answer to this. When the effect becomes more pronounced, it will hopefully remove political barriers for renewable electricity.
A widening gap between electricity cost and gas cost (and fuel cost) will be THE main driver of electrification! Installing a heat pump will be a no-brainer, driving an electric car will be a no brainer.
This can only happen once electricity decouples from gas prices - but that requires lots of renewables in the mix!
I'm not deep into electricity pricing dynamics, but based on my intuition, shouldn't that rather have a dampening effect on electrification, as the gap widens?
High gas prices + gap is small -> Big opportunity to undercut via cheaper methods like solar -> attractive investment -> more new builds
High gas prices + gap is wide and widening -> Smaller and smaller opportunity to invest in solar, as the market is already dominated by solar prices -> less attractive investment -> less new builds
Quite frankly, Germany already has a lot of renewables in the mix. Why did it take so long for the effect to appear and why is it still so modest? What should be renewables share be (vs ~60% today), for complete decoupling?
You need quarter-hours where renewables set the price for power. That's only happening now that renewables have reached sufficient penetration of the market.
And it will get more as batteries come online.
In a commodity market, the price is always set by the most expensive producer that is still able to sell. That's natural - why would I sell my apples cheaper than the other farmer if you need so many apples that you have to by from both of us?
... because you may have signed a longer term contract that might in turn guarantee offtake from you rather than the other farmer?
This marginal price is only for the spot market right? So the key question is more what % of the mix is spot vs longer term. And thus what the overall impact is on total blended price.
A dependency on solar panels which needs to be replaced every 5 years is less bad then a dependency on gas which is burned every day. Having said that nuclear decommission was a huge mistake.
50 years from now when those panels produce less than 75% of nameplate capacity they'll really regret not depending on a market where the swing producer is a cartel of theocratic dictatorships.
An installed solar panel will continue producing electricity, no matter how the relationship with the country that produced it develops. Unlike natural gas, oil or uranium where the fuel itself is the actual imported good.
Note that "gas" in this context means natural gas, not gasoline
As noted in the methodology below, they are measuring the gas-implied level as the marginal running costs of a combined-cycle gas turbine plant: the price of the natural gas necessary to generate a given amount of electricity, plus the cost of the necessary carbon credits to burn that natural gas. Then they compare that to the actual electricity price
> Note that "gas" in this context means natural gas, not gasoline
What's up with Americans consistently calling things "wrong" like this? "Gas" isn't even the right state of matter for the subject, nor is "football" actually a sport where the ball is mostly for the foot, almost like things are intentionally named bad.
"Gas" is short for "gasoline" which means "gas oil". That is a perfectly cromulent name for a liquid.
"Football" is a different game in the US because it arrived there from England in the 19th century when carrying the ball was allowed. In England the sport eventually split into distinct sports: association football (aka soccer) and rugby. In America they evolved the game independently but didn't change the name.
Hope that clears it up.
> but didn't change the name.
That's the part that don't make no sense, so no, still very unclear why Americans keeps insisting on calling things the wrong names :)
Because changing a name that's been in use for decades is very confusing and unnecessary. A rose by another name etc.
The full names of the two rugby codes are "rugby union football" and "rugby league football". So Americans aren't alone in their cavalier use of the word "football".
See also: https://en.wikipedia.org/wiki/Australian_rules_football
> Because changing a name that's been in use for decades is very confusing and unnecessary
Yeah, that never happens, not even with important national institutions or anything like that.
What's up with the British calling refined gasoline "petrol"? It's not even an abbreviation for the word, it's a totally different material? You don't go calling refined aluminium "bauxite", but you do call gasoline "petrol".
We're both wrong. It's a liquid at room temperature, and it's called not petroleum.
Yes, we all know the French are right on this one by calling it "essence"
Seems cromulent to me. One of the common meanings of essence is "a product of distillation" (compare e.g. essential oils - oils won through steam distillation). And gasoline is won through fancy distillation
Also, they drive on a parkway and park on a driveway.
Did you know that "Danishes" were... Austrian?
> Note that "gas" in this context means natural gas, not gasoline
Of course it does, why would anybody say "gas" when they are talking about a liquid? :p
This energy scam has been going on for more than 30 years in Europe and the UK.
The former Economic minister and professor Yanis Varoufakis explains [1].
My Fiberhood cooperative has a solution: the Enernet smart grid where you pay $0.01 per kWh. We wire up one in three houses or more in a neighborhood with power routers. People buy and sell only solar electricity from panels in the neighborhood, from batteries and from every ev charging station on every parking spot in the neighborhood and from every parked ev. Each participating house saves $2000 to $5000 per year for 30 years or more[2]. You also get free 25 Gbps internet. You heat your house with a heatpump or cool the house with an ice storage ac powered only by solar. If the cooperative makes any money the share the profit with all the members or they vote to buy more solar panels and batteries. The cooperative gives loans to houses that can not afford their own panels.
[1] Best version with info graffics https://www.youtube.com/watch?v=R3bo-s_OY4Q or
Longer version https://www.youtube.com/watch?v=NicE0-N9ux0&list=TLPQMDcwNDI... or
short version https://www.youtube.com/watch?v=TaHepQyE37Q
[2] https://www.researchgate.net/profile/Merik-Voswinkel/publica...
People seem to have trouble understanding how commodity markets naturally price their goods but the whole point of this website is to show that electricity prices are finally decoupling.
edit: I didn’t watch the videos, I don’t have time first watch a video and then to dissect bullshit from truth.
But the solar electricity is still overpriced and taxed. People pay several times more for solar electricity from the grid than what they get if they sell to the grid.
It's not overpriced. If it was, the grid operator would be raking in massive profits because they're selling way above cost. In reality grid operators have small margins, this indicates there is no overpricing.
Do you get paid less for power fed to the grid than power sold at retail? Yes. Because they're different things. You get say 5 cents for a kWh fed back to the grid, while you pay more like 25c. But guess what? Wholesalers also get 5 cents to sell to the grid. It's just that there's an additional 20 cents in grid operation and taxes for a retail price.
Taxes you can't avoid, it's not a 'scam'. It's money you pay that goes into public funds and returns to the public, and is spent by people you can vote to elect to represent you.
Grid costs also aren't a scam, they're just a cost of doing business. Again, profit margins are small, so they're pricing based on cost, not based on scam.
And it's all entirely optional. You can just install batteries yourself. You can do whatever you want. You don't have to use the grid. But surprise surprise, there's no reason to think that a small network is on average cheaper than a big network. The bigger the network the easier it is to share storage capacity and offload excesses from one place to another. It's the reason most states and countries try to build interconnectors to even build international grids, and why islands like Cyprus that don't interconnect and have small markets have the highest electricity prices. It's why anyone who builds a home and has the choice to connect to an available grid or not, does so. And why land and homes in locations without grid-access are valued less, because they're more expensive to set-up.
The price for grid power ought to be somewhat higher than the the grid operator(s) pay at the place where the power is delivered into the grid plus their own costs for running the actual grid. So what do you think is a fair price for building/maintaining/running the grid?
The grid is a nationwide electrical circuit with requirements to connect to most buildings, and with demanding uptime and safety requirements. How much ought building and maintaining that to cost?
If you are selling to the grid, there is probably over-supply. Prices are driven by supply and demand. If you want to avoid selling at lower prices and buying at higher, try and get a battery. Check ecoflow to get an idea of the costs.
Ecoflow is a good example of overpriced American tech. I payed $1500 for a 2 kWh battery. Our Fiberhood coop sells a 16kWh battery for $1800. Prices in China are lower still.
That’s because that’s how the grid is paid for.
Maybe a max-capacity price would be better for household grid connections, but that doesn’t change the fact that the grid needs to be paid for.
Is this a thing that people can actually sign up to, or is it vaporware? Varoufakis says a lot of things that aren't necessarily true.
You can sign up by becoming a member of the Fiberhood cooperative for free. Send an email to Fiberhood at icloud dot com. We must have your address and map location link or Google map address code so we can draw maps and make a website for your neighborhood to sign up and form an Enernet.
We will do a small survey and put up a detailed map of your neighborhood (like openstreetmap, see the slide in this talk [1]). We hand out door to door flyers and organise a weekend barbeque neighborhood party where everyone can come see how the cable between neighbours goes roof-to-roof, window-to-window or garden-to-garden between power routers. See our cost price bifacial solar panels and the large batteries.
We find that within a few weeks a few hundred people signed up for the cooperative and we start installing the first 10 houses. Most people invest in solar panels and batteries at wholesale prices installed by volunteers. Others get a loan to pay for this. You wind up getting payed for the panels you bought or paying around 1 dollar cent per kWh, saving a few thousand dollars per years for decades.
In the US the Rocky Mountain Institute and its founder Amory Lovins describes this as 'grid defection' and it happens on a large scale now.
Fiberhood has cooperatives forming all around the world, both rural and urban: Ukraine, Peru (near Iquitos by the Indian tribe on the Amazon River Bank, Southern Spain, Slovenia, Finland, The Netherlands, Australia.
[1] https://www.youtube.com/watch?v=vbqKClBwFwI&t=5574s
The Fiberhood planner maps are in the first slides in the first minute of the video. We used to have an interactive zooming map of Fiberhoods for every house in the Netherlands online but now we only have them available for Fiberhood members because of privacy rules. On the maps you can see where the batteries, solar panels and power routers are located in a Fiberhood version of Google Streetview.
Sounds like Fiberhood is adjacent to https://solarunitedneighbors.org/ ?
Yes and no, not really. There are many smart grids and more not-so smart grids around the world, but only a few are non-commercial or owned by the members.
Fiberhood is unique in that we have our own Enernet power routers (a software controlled multi-port bidirectional AC-DC-DC inverter peer to peer network) that can share large amounts of DC current, has special power aggregation to enable megawatt EV chargers in every house, battery nano-inverters that make cheap batteries last up to 20000 charge/discharge cycles, integrate (free) discarded solar panels and has a range of software defined networking options including 4 x 25 Gbps internet ports per house. Most smart grids are just a different meter and payment scheme, not a radical rewiring of the entire electricity system in the neighborhood without a commercial company or government controlling what citizens pay. Other smart grids raise the cost of grid defection, Fiberhood tech makes it possible to have abundant redundant solar energy at its cost price $0.01 per kWh, many times cheaper than national AC grid pricing anywhere in the world. The tech was made to prevent making money on energy but incentivize solving the climate crises by making Solar by far the cheapest option. Stop almost all carbon and methane greenhouse gas emissions by going 100% solar.
Please give some proof of Varoufakis lying. I always check what he claims in his books and talks and I never spotted a lie. I also check Saul Griffith and Amory Lovins talks, books and papers on factual errors and never spotten one in two decades.
Good for the Germans, in the UK we use marginal cost pricing, so consumers pay for the highest costing output regardless of how much if any they use. Means even if we get gas down to 1% well still be paying gas prices.
It's the same in Germany.
The reason why power prices can still decouple: Because there are more and more quarter-hours where gas plants are NOT setting the price and the marginal cost is set by renewables.
The same is happening in the UK.
> , so consumers pay for the highest costing output regardless of how much if any they use.
No, if no Gas is needed (!) for power production in any quarter-hour, the price is not set by gas.
PS: Emphasis on needed. Gas plants may still be running at a loss for whatever reason (heat coupling, special contracts), but if they are not needed to provide the power, they will have to bid at a loss, and then they will not be able to drive the price.
The irony is at the time of me writing this; gas is down to 4.6%[^1] and renewables are a whopping 88.5% and yep - the cost is based on the 4.6% of gas.
^1 https://grid.iamkate.com/
In Germany, the price for the 17:00 product today is about 11 Euro, which is NOT the price implied by gas. No gas plant can run at this price.
The price of gas is −£9.26/MWh? (from that link!)
Marginal pricing is not specific to electricity in UK, that's just how commodities end up priced.
Saudis pump oil at cost of $10 per barrel. Will they sell it to you at $10? Nope. The average oil price? Nope.
Saudis will sell the barrel at the highest price people are willing to pay - the marginal price. So if the most expensive oil needed to match the global oil demand is some super expensive arctic oil project, the oil will be priced according the marginal cost of that project even if only 1% is needed.
Yea. The merit order bidding method just reflects the natural pricing of any commodity market.
My understanding is that it's the same here in Germany. From the website
> What does "decoupled" mean? In a gas-dominated electricity market, the marginal generator setting the price is almost always a gas-fired power plant (CCGT). That means electricity prices are structurally linked to gas prices — when gas rises, electricity rises with it. Decoupling happens when enough zero-marginal-cost renewable generation (wind, solar) pushes gas off the margin for enough hours that the annual average electricity price no longer tracks gas.
I wonder what prices would they have if they did not implement sunsetting of nuclear energy. Has to be the worst energy policy decision ever.
Levelized Cost of Energy for Germany's existing nuclear fleet was roughly 13ct/kwh.[1] The averaged costs (YTD) from the linked article currently stands at 9.71 ct/kwh. So nuclear in the mix would have increased the costs.
[1] https://www.bundestag.de/resource/blob/877586/4e4dce913c3d88...
LCOE is good for marginal cost (eg: one more solar panel), but fails dramatically at evaluating systemic costs.
A nuclear reactor moves the entire market down, including the costs to the consumer when he buys solar energy.
Here is a UN document explaining it: https://unece.org/sites/default/files/2025-09/GECES-21_2025_...
Although nuclear energy produces no carbon emissions, it is simply not price competitive with solar and wind in the western world. A culture of safety above all else made nuclear not price competitive. And it would be political suicide for regulators to relax safety given how accidents like Chernobyl or Three Mile Island are etched into the public mind.
And that is very much a good thing.
No. Nuclear energy was at the same time very expensive and only a very small percentage of the energy production. Sunsetting the old plants had no negative impact at all on electricity prices, to the contrary, insofar as it made space for more green energy.
Compare emissions between France and Germany during dunkelflaute. Germany is frequently at the Polish levels of emissions and Poland is famous for huge emissions. Sunsetting would make sense if they could already generate enough green electricity even in bad conditions, which was not and is not the case. It was purely political decision - Germany wanted to be European hub for distributing gas from Russia (that's why tried to convince others than gas is somehow green energy).
How much solar/wind can you really install in the area covered by a nuclear station?
That's not the problem; Germany has enough space to build solar and wind capacity to satisfy its consumption – on average. The problem is storage.
Most definitely not true. Maybe enough area to cover current electric usage, but to truly decarbonize society a lot more renewable energy is needed - for transport, heating, iron industry, chemical industries, fetilizers etc. Massive amounts of electricity is needed unless you export your industries to china.
Why not? Germany's total energy consumption is estimated to be around 1-2 TWh/y. This could be generated by photovoltaics covering less than 5% of its land surface.
There are significant problems around rolling out that much capacity quickly enough, and I also don't think nuclear should have been shut down that hastily, but I don't think "only nuclear can cover long-term energy needs" is true in any way.
Wtf are your numbers from, but they are wrong. It's over 2200TWh per year. And it you truly want to be renewable, the numbers go up. Upcycling waste to plastics or using hydrogen to make steel is more energy intensive than using fossil fuels. https://www.umweltbundesamt.de/en/indicator-final-energy-con...
In a pieceful world, sure. But then there is this [1]. Don't blame the player, blame the game.
[1] <https://en.wikipedia.org/wiki/Chernobyl_Nuclear_Power_Plant_...>
Much better idea to just buy oil and gas from Russia /s
Better than nuclear power plants getting hit by drones.
We will have Chernobyl longer than dependency on Russian oil and gas
Do you mean the nuclear power that the free market companies very explicitly said wasn't worth doing? That one? Why are we pleading the government to use a horrendously expensive technology that even the free market hates?
I suppose you can just compare it to France https://app.electricitymaps.com/map/3mo/daily?signal=electri...
It's widely accepted that sunsetting nuclear energy had a positive impact on the deployment of renewables, and consequently on the longer term energy prices. It was one of the better energy policy (and environmental, and security) decisions Germany has made in the recent past.
You know that nuclear energy was heavily subsidized?
And they still don’t have a long term storage but therefore rotting barrels with nuclear waste in the interim storage facility Asse which have to be retrieved. Cost estimate around 14 billion Euros.
Merit order pricing and the fact that you need fossil peakers will make the price effect completely negligible to consumers. You are comparing the MWh price of slightly more efficient fossil power plants to slightly less efficient fossil power plants.
For me personally it did not. I was a happy Tibber costumer until recently, meaning I was charged the quarterly hour spot price per kWh. The Iran War let to a significant jump in the price during the hours when renewables were low. I switched back to a traditional fixed price per kWh plan because of the high gas prices.
My quant mind is sprained by the implied volatility around the mean.
Would be good to have more than a one sentence explanation of what you mean, but this is a result of low storage. In the oil market, if prices are too volatile you just stick it in a tank until they stabilize. You only get negative prices if all the storage is full, which happened to WTI once.
It is incredibly volatile. Spot prices in the day-ahead auction for tomorrow are between -39€/MWh and 201€/MWh. And that's a pretty normal amount of volatility for this time of year
https://energy-charts.info/charts/price_spot_market/chart.ht...
sorry, can you elaborate? I am happy to fix it or add a caveat comment to the methodology section.
Has this benefitted the regular/average consumer?
Nope. They pay more than they were with the "old" energy mix of more gas and nuclear.
Telling people it could be worse isn't really something to be proud of.
I personally now have solar panels on the roof and a heat pump so we only use electricity and don't rely on gas. Germany's strategy is really beneficial to households like my own. Unless you're relatively well off or on benefits, you're losing big time. The costs are constantly increasing with people telling others to just take money (you don't have) to install some solar panels on the house (you don't own) or buy an electric car (you can't afford).
The whole point of this website is to show that the price of electricity is year-to-date 22% cheaper than it would be in a gas-dominated grid without renewables.
So I don't know where you're getting the "No" from?
You could argue that maybe investing all those subsidies into nuclear would have been cheaper, but that would have had a lot of path dependencies that simply did not pan out in Europe.
I have dynamic pricing in Germany and the cost of electricity when to literally zero for a few hours today.
Seems like the regular consumers you refer to would be paying even higher rates for gas and petrol if others weren’t electrifying.
If my electricity prices are no longer linked to gas prices, I can have cheaper electricity - my provider only produces green energy. But in the past raising gas prices would have also raised my prices, regardless. So yes, regular consumers can profit from this.
> my provider only produces green energy. But in the past raising gas prices would have also raised my prices, regardless. So yes, regular consumers can profit from this.
It's one single grid. You get coal, nuclear, wind, solar, and everything else. If you buy from a provider, you get that mix.
Well, the electrons arriving in your home will the same as your neighbours, regardless of which supplier you choose. But by choosing a different supplier you can steer which energy sources will be used to feed that grid, so it still makes a difference, just not exactly where you live.
What if the whole point of the strategy was to incentivize households to become more like yours?
An energy transition isn't just some big centralized state planned enterprise. It's also the sum of people putting up their own solar (on the balcony if they're renters!) etc.
An 800W plug-in solar system for your balcony can be had for 200 euros these days, breakeven is super quick.
Clearly it has relative to what prices would have been if it was gas powered only.
Do you have any reason to believe the methodology in the linked page is wrong?
Nice! This is the first time i see anyone providing a quantitative answer to this. When the effect becomes more pronounced, it will hopefully remove political barriers for renewable electricity.
Yes!
A widening gap between electricity cost and gas cost (and fuel cost) will be THE main driver of electrification! Installing a heat pump will be a no-brainer, driving an electric car will be a no brainer.
This can only happen once electricity decouples from gas prices - but that requires lots of renewables in the mix!
I'm not deep into electricity pricing dynamics, but based on my intuition, shouldn't that rather have a dampening effect on electrification, as the gap widens?
High gas prices + gap is small -> Big opportunity to undercut via cheaper methods like solar -> attractive investment -> more new builds
High gas prices + gap is wide and widening -> Smaller and smaller opportunity to invest in solar, as the market is already dominated by solar prices -> less attractive investment -> less new builds
Am I missing something here?
High volatility -> Invest in storage.
Occasional negative prices -> Invest in intermittent consuming applications.
With electrification, I meant electrification of energy consumption.
Ah, of course. Thanks for the clarification!
That's more of a political and tax decision than anything else.
Quite frankly, Germany already has a lot of renewables in the mix. Why did it take so long for the effect to appear and why is it still so modest? What should be renewables share be (vs ~60% today), for complete decoupling?
You need quarter-hours where renewables set the price for power. That's only happening now that renewables have reached sufficient penetration of the market. And it will get more as batteries come online.
In a commodity market, the price is always set by the most expensive producer that is still able to sell. That's natural - why would I sell my apples cheaper than the other farmer if you need so many apples that you have to by from both of us?
... because you may have signed a longer term contract that might in turn guarantee offtake from you rather than the other farmer?
This marginal price is only for the spot market right? So the key question is more what % of the mix is spot vs longer term. And thus what the overall impact is on total blended price.
That exists as well it’s called PPA in the power market, a power purchase agreement.
But ultimately, due to arbitrage, PPA prices will converge towards expected spot market prices.
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A dependency on solar panels which needs to be replaced every 5 years is less bad then a dependency on gas which is burned every day. Having said that nuclear decommission was a huge mistake.
5 years is a ridiculous underestimate. 20 is more reasonable.
5 years is the worst case estimate, with 20 years lifetime this dependency on China is even less bad.
Nobody is retiring solar panels after only 20 years.
50 years from now when those panels produce less than 75% of nameplate capacity they'll really regret not depending on a market where the swing producer is a cartel of theocratic dictatorships.
Damn, you're right. Once they burn this tranche of solar panels the Chinese will really have them over a barrel.
oil and gas famously never requires subsidies
Exactly, dependence on solar panels effectively means switching Saudi Arabia for China.
An installed solar panel will continue producing electricity, no matter how the relationship with the country that produced it develops. Unlike natural gas, oil or uranium where the fuel itself is the actual imported good.
sounds like an objective upgrade
Oh ffs, get the FUD out of here.