Comment

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

<- View Parent

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.

source

Sort:hotnew top

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.
source
- 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
  
  source
  - hellothere@sh.itjust.works ⁨1⁩ ⁨year⁩ ago
    I’m done here, you’re clearly not reading what I’ve said if you genuinely believe I’ve said capex never matters.
    
    source
    bernieecclestoned@sh.itjust.works ⁨1⁩ ⁨year⁩ ago
    I said - Renewables are only economically viable because the cost of power is paid on the last generator, which is natural gas.
    
    You said - This is not true, renewables are economically viable at much lower prices than fossil fuels because their next unit cost is effectively zero
    
    And yet I show you sources where increased capex costs are making renewables economically unviable because the capex costs have increased so much due to inflation and the wholesale price they were offered at auction is now not enough to justify the CAPEX to build it.
    
    You’re going in circles because you won’t admit that the horse comes before the cart. You can’t get to zero extra unit cost if you don’t build the fucking thing.
    
    source
    -> View More Comments