Comment on Energy bills to tick lower this winter but will remain high

• hellothere@sh.itjust.works ⁨1⁩ ⁨year⁩ ago

  I’m not the person you originally replied to when you falsely claimed that renewables are only economically viable because of last generator pricing.

  I have explained why that isn’t the case, how both generation and new capacity decisions are made, the different aspects those decisions consider, and how because their next unit cost is lower due to generation input being free they are able to operate profitability at lower spot prices than are achievable for fossil fuels.

  One last time - capex payback is a consideration when building new capacity, yes, but that is based on average prices over decades. It is not a consideration when choosing whether to power up or down on at a specific time on a specific day.

  Attempting to simplify this to just capex is wrong.

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  • bernieecclestoned@sh.itjust.works ⁨1⁩ ⁨year⁩ ago

    Economically viable means you can raise the capital to build it…higher returns attract more capital

    Spain has cut the last generator link so now renewables are not charged at the gas rate.

    Let’s see how it works out. It’s already helped reduce inflation there.

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    • hellothere@sh.itjust.works ⁨1⁩ ⁨year⁩ ago

      • Why are you linking to a definition of economic viability for buildings? The main cost of traditional fossil fuel based electricity generation is the fuel source, over lifetime, not initial construction
      • Higher returns due to high average costs certainty attract investment - I said as much in my first comment
      • I agree with disconnecting prices from last generator, and that it will reduce inflation, because it would reduce the average price, all else being equal
      • A lower average price would extend payback periods which may discourage investment when compared to the current pricing model, again all else being equal. This is a difficult comparison because it would presume an ability to choose between the two payment methods, which you can’t.
      • We are still talking about average prices, over time, which again is different to spot prices, and both above points are further proof that your original statement of renewables being economically inviable is incorrect.

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      • bernieecclestoned@sh.itjust.works ⁨1⁩ ⁨year⁩ ago

        Because capex is capex. Buildings, solar, windmills. Doesn’t matter. All that matters is capex roi and opex unit per watt

        We are still talking about average prices, over time, which again is different to spot prices, and both above points are further proof that your original statement of renewables being economically inviable is incorrect.

        Now go read this and tell my that capex doesn’t matter

        www.bbc.com/news/uk-england-norfolk-66263340

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