Energy infrastructure

No, that'd would be proprietary information I'd imagine.

Your second question is valid alright but I don't think there's any profiteering taking place among supply companies to be honest. I don't think even one reported a profit last year? None of the big ones anyway.

What I think will be interesting to see is if a new supply company starts up in the next few months to take advantage of the current situation and offer lower rates. They could offer a pass through of the current, relativey low, wholesale prices (plus a margin for profit) while the big companies are locked out because of having already hedged. We'll almost certainly see it in the UK... Maybe here too..

It's not just this though. Think of the complexity required for the electricity billing system to have a real time track of the wholesale electricity price then rate all customers usage in real time based on this. If the wind stops blowing or the sun stops shining then the price can change quickly as gas is brought on-stream

Then think of the customers bill showing this detail, every month the cost would be different

https://www.youtube.com/watch?v=XmqSnoH6rfo, interconnectors in europe and the world

Well if the parameters that I mention above happen with our current system it means we have very little wind generation (as there’s low wind speeds) and low solar (as it’s winter). This then means we have a shortfall in electricity generation so we need the shortfall picked up by fossil fuels.

I mean this has happened a good few times last year and previously. As you are fond of saying on other threads- google is your friend here.

That’s beside the point of the question I asked though in response to the other posters very valid question.

Yeah, that's a fair point. It's all fine with the consumer until its not fine.

I should have included that it's also a good time for a "normal" retail supplier to come in and take advantage of relatively low forward prices while not having any of the hedging hangover from high prices last year. Doesn't necessarily have to be a pass through tariff!

Would you not just burn gas for those few days, maybe 3% of the year. If the other 97% are powered by renewables its still pretty low emissions overall.

Also we had weather like that a few months back and the weather buoys offshore were all reporting wind speeds sufficient to run turbines. So in a few years it should be less of an issue than now.

That’s a ridiculous post.

Many posters have sent links and screengrabs of Eirgrids fuel mix on those very days and that clearly shows low levels of renewables on the system.

Again though you seem reluctant to answer the question regarding cheap electricity being provided by renewables?

The wholesale price per hour (or whatever time period) doesn't get split up by generation type like that. All the generators, gas, coal, wind, hydro, whatever, all bid whatever price they feel is needed to cover their gen costs into a daily auction. The units clear the auction by cheapest to most expensive until demand is met. There's a single marginal clearing price that everyone then gets.

Ok so how can we get cheaper electricity from renewables if we still need gas (for example) to cover a dip in wind?

😅 I think different people are talking about different things here.

Agreed, but on an annualised basis not hour by hour.

So generally speaking in the periods where the wind is blowing and there's high renewable generation prices will be lower. When the wind stops and thermal gen had to take over them prices will be higher on average.

In theory the more renewables you can get on the system the lower the wholesale price will be, on average (but the renewable portion of this will be topped up to the agreed subsidy price via the PSO levy). But there will still be some periods with high prices where there's no wind /high demand.

Having adequate generation available is the reason for the capacity remuneration mechanism which is an aspect of the market. The CRM pays capacity auction (different from the daily electricity auction) winners for being available, whether they are called or not. This is the aspect of the market that has gone a bit wrong over last three years resulting in risks for the grid over last winter and winter before (which ultimately did not materialize).

It is undoubtedly true that capacity payments will have to go up to build more needed gas capacity, and of course, electricity customers ultimately pay for this. Prospect of scarcity pricing (being able to Jack up the price because daily market is desperate) is not enough to justify building a plant.

in the end, the spectre of high carbon prices as the EU-level cap is squeezed downwards is what makes using renewables to reduce gas consumption really attractive.

So

Why isn't Germany weaning itself off gas and coal then given its large onshore and offshore wind capacity??

https://www.reuters.com/business/energy/german-industry-pay-40-more-energy-than-pre-crisis-study-says-2023-01-30/

Love to know where your 3% figure came from?? As others have mentioned the Grid Dash board is telling when it comes to wind energies limitations to meet peak demand periods during the year. As consumers are finding out, indulging such fantasies come with a very high price tag when you hand over pricing and control of basic utilities to companies that are little more than speculators set up to gouge bill payers via deeply flawed developer led energy policies.