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Re: UK Energy Prices
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Originally Posted by Pierre
What you mean gas is still cheaper than all that fantastic renewable electricity!!!
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You may find this informative…
https://www.goodenergy.co.uk/blog/wh...ricity-prices/
Quote:
Gas sets the price of electricity, because the electricity price in every half hour period is set by the marginal cost of the last generating unit to be turned off to meet demand – which is invariably a gas power plant with high marginal costs.
To provide an analogy, think of a penalty shootout in a sporting competition. A team will select a list of individuals in order of preference, with the best individuals selected first (i.e., renewables). But it’s the individual who steps up last who has the final say, deciding the fate of the result.
Generation types are like players in a penalty shootout. Renewables get selected first. But when the pressure is on, gas steps up to the spot. And its score determines the result.
The problem we have at the moment is that whilst renewable capacity has grown significantly, natural gas is still responsible for 38% of our electricity generation in the UK.
When we have periods of low winds for example, the system will often turn to gas generators to fill that demand. But that comes at a high price, and even more so recently with the record prices on the wholesale gas market.
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