It is a bit frustrating to write about energy when the complexity of the markets is so easily misunderstood. You’d expect papers like the Financial Times to have a better grasp of what they write about, but sadly this is not always the case… For instance, in today’s article,
All energy sector is very political. The question remains - will the surplus from CfDs for RES will be enough to sensibly lower the energy cost to more then a relatively small group of retail consumers. Although - it is a temporary solution anyhow, as larger volumes of renewables will lower the price anyhow. The key is then - how to encourage more investment in RES through right policies.
What about prices of electricity paid by industry? Shall they by compensated the same way as consumers? Their consumption is even bigger then consumers’ and they also need lower prices to stay competitive…
What are your thoughts on Michael Liebreich's idea to split the market into a "Clean Power Market" (CPM) and a "Fossil Power Market" (FPM) in order to lower prices? He argues to "let gas set the price only for that part of the market which is fulfilled by fossil fuels - gas, the remaining bit of coal, and oil. Trade all clean energy on the other market: renewables, nuclear and power storage. To make this work, you would also need to place a price cap on the clean market." https://www.linkedin.com/pulse/uk-energy-crisis-time-split-power-market-michael-liebreich
All energy sector is very political. The question remains - will the surplus from CfDs for RES will be enough to sensibly lower the energy cost to more then a relatively small group of retail consumers. Although - it is a temporary solution anyhow, as larger volumes of renewables will lower the price anyhow. The key is then - how to encourage more investment in RES through right policies.
What about prices of electricity paid by industry? Shall they by compensated the same way as consumers? Their consumption is even bigger then consumers’ and they also need lower prices to stay competitive…
What are your thoughts on Michael Liebreich's idea to split the market into a "Clean Power Market" (CPM) and a "Fossil Power Market" (FPM) in order to lower prices? He argues to "let gas set the price only for that part of the market which is fulfilled by fossil fuels - gas, the remaining bit of coal, and oil. Trade all clean energy on the other market: renewables, nuclear and power storage. To make this work, you would also need to place a price cap on the clean market." https://www.linkedin.com/pulse/uk-energy-crisis-time-split-power-market-michael-liebreich