Even clean energy is benefiting from super-high power prices in the UK, which are being set by super-expensive natgas electricity prices (natgas is expensive because of the Ukraine-Russia war among other things).
This UK market structure means consumers have to pay too much, even when they are buying from clean energy providers that do not need to pay high natgas costs.
See this thread (click through) for a fascinating discussion on solutions. Mr John Baldwin used to have a role overseeing the British natgas grid so he’s a credible solution maker.
He’s effectively saying the super normal profits should be shared with the system …ie returned to poor people … or even the not-so poor …who struggle to pay the super-high utility bills:
A solution could be contracts for difference from october 2022, Mr Baldwin said — deals where parties to a contract agree to share the loss / profit when market prices related to the contract move against other market prices in the contract.
It doesn’t get mentioned in the “eco press” because the eco press don’t want to lump “good green energy” into the “bad fossil-fuel energy” basket …is the inference.
Policymakers should try to ensure NO ONE makes super normal profits from corrupt energy markets. They need to be much more nimble (which ain’t easy, I admit).
We will be doing amazing things with power grids…like charging electric helicopters. The incentives need to be right.
