How can it be that the power price for all electricity is determined by the most expensive generator? It's a fair question by many politicians, but not quite what happens. Renewable energy is already sold at contractually low fixed prices set a while back. These PPAs are now more expensive, perhaps a good incentive for some extra renewable capacity. At the end of the day, spot markets also need to be protected by the new market design for possible low spot prices in future.
Did you check the prices in UK?? They are insane, way higher than Germany.
How can it be that the power price for all electricity is determined by the most expensive generator? It's a fair question by many politicians, but not quite what happens. Renewable energy is already sold at contractually low fixed prices set a while back. These PPAs are now more expensive, perhaps a good incentive for some extra renewable capacity. At the end of the day, spot markets also need to be protected by the new market design for possible low spot prices in future.