Germany's Glut of Electricity Causing Prices To Plummet
WIth an interesting followup to the recent news that Germany's power production by at least some measures was briefly dominated by solar production, AmiMoJo (196126) writes Germany is headed for its biggest electricity glut since 2011 as new coal-fired plants start and generation of wind and solar energy increases, weighing on power prices that have already dropped for three years. From December capacity will be at 117% of peak demand. The benchmark German electricity contract has slumped 36% since the end of 2010. "The new plants will run at current prices, but they won't cover their costs" said Ricardo Klimaschka, a power trader at Energieunion GmbH. Lower prices "leave a trail of blood in our balance sheet" according to Bernhard Guenther, CFO at RWE, Germany's biggest power producer. Wind and solar's share of installed German power capacity will rise to 42% by next year from 30% in 2010. The share of hard coal and lignite plant capacity will drop to 28% from 32%.
People here keep saying that Germany is adding coal capacity to make up for the closure of nuclear plants, but actually they are reducing it over time. Yeah, in the short term there are more plants, but that is just so they can get running before taking the old ones off line. After that the total capacity will be lower.
const int one = 65536; (Silvermoon, Texture.cs)
SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
Lower prices???? In what world?
The prices per kW/h have risen year after year in Germany. How do I know this? I'm living in fucking Germany and get a higher bill each and every year.
RWE is one of the greediest bitches in Germany. They even have the audacity to ask the government to pay for the save destruction of their own nuclear plants, after receiving subsidies to operate them and extracting as much money as possible for their own pockets.
So instead of extremely high prices we are going to get high prices? Awesome!
http://de.wikipedia.org/wiki/S...
Lists an average price of 26,4 ct/kWh for 2012 in Germany. RWE.de gives me a current price quote of 25,72 ct/kWh.
The average in Europe is 18,4 ct/kWh.
Power may be cheaper on the exchange but the consumer is still getting shafted.
The only people who will profit from this are energy traders and power hungry corporations. They currently pay ~15 to ~12 ct/kWh.
Everyone who buys Wild Hunt will receive 16 specially prepared DLCs absolutely for free, regardless of platform.
The production figures in this article are all given as percentages of demand - not the actual amount generated. There's two reasons Germany could suddenly be producing an excess of energy: supply has increased, or demand has dropped. A quick Google shows German production has dropped 6% in the period 2004-12 ( http://en.wikipedia.org/wiki/E... ).
So the reason isn't that Germany's renewable plants are producing an abundance of power - it's that people are demanding less power; presumably because they cannot afford prices that are among the most expensive in the world ( http://www.contactenergy.co.nz... )
Just because you're paranoid doesn't mean there isn't an invisible demon about to eat your face
Funny, I just got a letter stating my (Baden-Wurttemberg, Germany) energy prices will rise on August 1st to 27.42 cents per kWh. That translats to 37.43 US cents per kWh. This price will remain in effect until December 2015. Nice.
Abrupt power glitches are a (different) problem, but I'm sure that can be solved, and/or that plants can be upgraded to handle them better. The article is also talking about the rolling mill snagging, where I was hinting at the aluminium electrolysis, which is very much insensitive to these glitches.
switch supplier
You mean switch bill-printer, right? The supplier won't change - that's one of the great cons of the privatisation of utility suppliers.
And any as multi-billion dollar corporation kno, the "risk" of being investigated for pretty much anything is part of business. The laws are phrased vaguely enough that all that really matters is the bias of the judge, which will be reflected in how he/she interprets the facts and the law. A good lawyer goes a long way to making a particular view easier to swallow, ofc.
5 people think: "We'd all remain more profitable and minimise our risk if we kept prices high." That's easy. Don't even need to meet up to see that's obvious. Market's captive, baby.
The average household electricity prices in Germany were at ~29 eurocents per kWh in 2013 and they are rapidly rising 5-10% per year. The "price drop" the article describes is the drop in the electricity exchange market (EEX) prices, which indeed went down from something like 5.5 cents to 3.75 cents in the last years. The reason is the massive influx of highly subventioned solar, wind and biogas-generated electricity. At times when the renewables production spikes, the electricity is "sold" at negative prices - i.e. whoever takes it, gets paid.
For the end user, the falling market prices are pretty much irrelevant, since the end price contains the averaged difference fee ("EEG-Umlage") between the subventioned price and the market price - the lower the market price, the more the end users have to pay to get the subventioned price to the level defined by law. The more renewable energy is produced, the more they have to pay in total.
The other side of the issue is that the commercially operated conventional power plants cannot competitively operate against prices deflated by subventions, so many operators announced to scale down their capacity and close many power plants. In many cases, brand-new gas-fired plants with very high efficiency are affected, of all things, because of the rising gas prices. This however plays against the renewable energy plans, since exactly these gas-fired plants are direly needed to keep the grid stable in presence of highly fluctuating renewable inputs. Currently there are talks about introducing subventions for the conventional gas- and coal-fired powerplants in order to maintain their generation capacity. The subventions of course will be forwarded to the end user.
http://srsroccoreport.com/germ... :
Since the introduction of the Renewable Energy law in 2000 aimed at replacing coal and gas-fired as well as nuclear power generation by so-called renewable energy sources, the household price for electricity has jumped by more than 200%. German customers now pay the second-highest electricity prices in Europe. At the same time, the task of stabilizing the grid against the massive erratic influx from solar and wind power plants that produce without regard for actual need has pushed the operators to their limits.
One of the major problems with wind and solar is that the projects aren't commercially viable without huge Govt subsidies including long-term contracts by energy utilities to pay 2-4 times the going wholesale electric rate for solar and wind generated power.
This just illustrates that carbon tax is too low
Ah, looks like we've run into another person who believes that human misery is the way to go. How's the plan for excessively high energy prices working out for various countries anyway? And do you believe that you can build a world on expensive energy, expensive food, and expensive bare necessities without causing massive suffering to people.
Om, nomnomnom...
Storage costs money. Lots of storage costs lots of money. Storage wastes energy too -- pumped hydro, the cheapest form of bulk energy storage has an input-to-output efficiency of about 65 percent. Baseload coal, gas and nuclear generation doesn't need storage to be useful and meet demand 24/7/365 unlike intermittent renewable generating capacity, but no-one ever adds the cost of storage to the cost of renewables when comparing prices.
That is incorrect. In many countries, such as my own (Finland) you can actually choose which power provider to use.
My bill basically consists of two parts. One comes from utility provider providing power transmission wires to my home (which I cannot choose for obvious reasons) and one comes from the provider of electrical power to the grid (which I can choose from anywhere in Finland).
I live in city of Tampere, and buy electricity from provider in Kouvola (https://www.kssenergia.fi/). The distance between our cities is several hundred kilometers, but this works because electric grid is unified, and what actually happens is that provider feeds a certain amount of energy into the grid, and whatever energy I take out is billed according to our contract. Provider is required to feed this much power (+ certain surplus for transmission) into the grid at its local exchange. This creates competition between electricity generating companies while transmission fees are monitored by government to ensure that they are in line with spending and do not abuse the monopolistic rights (since they are the only provider in the area for obvious reasons).
This system enables healthy competition for power providers without upending utilities.
Great idea, but it has too many mistakes:
1. Most people in Germany do not have their own house, but live in rented apartments. They have no possibility to install any kind of power generator, renewable or not.
2. Even if you have your own house, you cannot install for example a wind turbine or a biogas tank - these are only allowed at a minimum distance to living areas.
3. So, the only option is the solar power, but its output is fluctuating, so you need capabilities to equalize it, either:
- keep a connection to the grid (which brings you back all kinds of taxes and fees back, also see the next point)
- have a battery storage - for a househould it would require a battery the size of a shipping container and cost 1-2 million euros and wear out within few years. Remember, you need a storage capacity to last through the winter, where there is barely any solar output.
- have a backup generator running on diesel or gas - possible to combine with a heating boiler, there are solutions on the market like that, but then again you will need to pay additional taxes for electricity generation from gas, pay for gas, deal with the waste heat when you don't need it and I don't think any solution will readily run without grid connection
4. Starting from this year, the regenerative energy produced for self-consumption will be also subject to the EEG surcharge (the money that goes to the subventioning the renewable energy production) in Germany.
When you realize that it's cheaper for you to live off the grid you will realize that it's cheaper not to live here at all.
No. Energy generation is a very difficult thing in that entire grid must stay within certain tolerance levels. We're talking about gigawatts per hour, so your swimming pool would have to be a size of a large lake or two and would obviously not be worth the cost.
They used to pump electricity up into potential energy water storage in some places, but those have been in dire need of upgrades and for some fucked up reason (which is an apt summary of the entire Energiewende really) are not supported and are actually closed down. All while new coal and gas is being massively built up so that they have hot reserve ready to go for the renewables fluctuations.
A whole house backup battery costs a few thousand Euros and will last decades. Electric vehicles are pushing the price down further as used packs become available and production ramps up.
const int one = 65536; (Silvermoon, Texture.cs)
SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
Ah, looks like we've run into another person who believes that human misery is the way to go.
Let me guess, you typed that while staring into a reflective, black screen. Permitting unchecked emissions of CO2 is what's going to cause us the real human misery. Keep telling yourself you can shit where you eat without getting sick, though, while desperately looking around for supporting examples.
"You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
Here in america my power bill consists of only one part, and I have the choice of whether to go fuck myself or allow the regional monopoly to price gouge me for electricity.
A bullet may have your name on it but splash damage is addressed "To whom it may concern."
I have bad news for you (sorry, not much found online except in German language): http://www.koreatimes.co.kr/ww... http://www.welt.de/wirtschaft/... It's a literally giant installation, cost: 6 million euro (1.3million subventioned from the state), capacity: 5MWh, that's 250 euro worth of electricity stored. Life span - certainly not "decades", 10 years at most.
I've got a "whole house" battery backup that I installed several years ago for about $ (usd)8k. It has 8 batteries (6 volt gel packs in series) and a 3 Kw inverter with integrated auto transfer switch. That's been enough to run the critical systems in the house for 3 days (from experience). It doesn't run the air conditioning, but everything else works just fine.
Interestingly enough, German residential electric rates are up to four times as high as US rates (Hawaii pays about as much as Germany, New England and Alaska half as much, everywhere else considerably cheaper)
Finnish rates, on the other hand, are comparable to New England's rates. In other words, more expensive than anywhere but Alaska and Hawaii.
So, if you're being "gouged", I take it you live in Hawaii? Because otherwise, your "gouged" is probably lower than anyone in Europe is paying....
"I do not agree with what you say, but I will defend to the death your right to say it"
...pumped hydro...has an input-to-output efficiency of about 65 percent.
I think that's a pretty low number, perhaps typical of older designs. Newer designs can have efficiencies upwards of 80%: http://en.wikipedia.org/wiki/P...
http://people.duke.edu/~cy42/P...
http://www.colorado.edu/engine...
...and nuclear generation doesn't need storage to be useful and meet demand...
I believe nuclear tends to be quite bad at load following: http://en.wikipedia.org/wiki/L...
Of course, it is excellent for always-on power, but not ideal for surges or lulls. In certain cases -- L.A. in the summer, for instance -- solar power, although intermittent on the whole, is intermittent in the most useful way: on a nice clear hot day, there's the biggest demand for A/C and the best solar power production.
...but no-one ever adds the cost of storage to the cost of renewables when comparing prices.
Well...staunch proponents with an ax to grind may not include such costs, but then, staunch proponents of coal with an ax to grind will ignore any externalities related to airborne toxins. Any legitimate study of renewable energy should really include storage costs.
With all that said, I really think Germany did the wrong thing with the whole anti-nuclear energy thing. To paraphrase that quote about democracy, nuclear is the most dangerous form of energy generation, except for all those other sources we've tried ( http://physics.kenyon.edu/peop... ).
Let me guess, you typed that while staring into a reflective, black screen. Permitting unchecked emissions of CO2 is what's going to cause us the real human misery. Keep telling yourself you can shit where you eat without getting sick, though, while desperately looking around for supporting examples.
So you're telling me that CO2 is what's going to cause the real human misery. Not poor healthcare, not food to eat, not ways to keep things from spoiling. Not having properly developed agriculture or sewage management. Okay there. Next you'll be saying that burning cow dung indoors doesn't cause lung cancer, and sleeping on the ground in a hut covered with shit doesn't cut your life expectancy in half due to parasites. You do realize that in my examples that not even 1/3 of the people on this rock are at this level. If you're lucky you might hit 20%
Om, nomnomnom...
1. Most people in Germany do not have their own house, but live in rented apartments. They have no possibility to install any kind of power generator, renewable or not.
That is not really true. One of the things that is becoming more common is for the housing corporations to create projects where the renters pay an additional fee for using power from solar panels the corporations install. There are variants when it comes to the type of payment and ownership, but the general construction is quite viable. Basically, renters get to bet that their fees for the solar panels will be lower than what they would pay in electricity costs, feel good about supporting solar and have to do nothing otherwise. The housing corporations can (technically) provide better panels and prices due to the scale advantages.
It's obviously not a panacea, considering that housing corporations could really mess up their choices or try to become rich off of the projects, but in a way it is a much faster way to increase the number of installed solar panels than waiting for home owners to take the plunge.
Some places, even here in the US, have a choice of electrical provider, it is VERY rare, but does happen.
Certain parts of Texas have fully seperated the generation market from distribution. Distribution is run by a monopoly called Oncor, and they get to leech from your bill at a mostly fixed rate. You then sign up for generation with a variety of providers offering various contract terms. When I lived there I locked in a 2yr contract, flat rate at 8.9 cents per Kwh, and tried my hand at bitcoin mining via dirty old coal. But I could have had 100% wind or 100% renewable at even lower rates, but they were seasonal and they tended to have short terms. 3mo then you get dumped on the market again when the 8.9 cent deal isn't available. Longer term renewables ran 11 - 15 cents per Kwh.
This is the system California was trying to set up, but the mistake they made was to not seperate distribution from generation. Now they're stuck with a politicized PUC making decisions that deem 1 Kwh used by a company has higher economic value to the state than 1 Kwh used at my house. So I get a form of rationing by tier, and if I leave my computers on and do too many load of laundry, they start charging me 50 cents a Kwh. Just who get s to keep the difference between that and the actual generation costs is lost on me...
The batteries are Fullriver DC310-6 gel-packs which are supposed to deal with hydrogen out-gassing. I think the model number translates to 6 volt, 310 Amp hours. They're connected in series to yield 48 volts DC to the inverter.
The system was sized to run the critical circuits in the house for 3 days. (Critical being the heating boiler (LP), some lights, the kitchen (except the electric oven), a sump pump, and a circuit for the living room and master bedroom.
solar is going to be affordable for me to install on my roof (technically it already is today, but due to HOA rules I can't have them
Have you checked with your HOA recently? TX now has a law that regulates what HOAs can demand as far as roof top solar. An HOA cannot simply say "no solar panels allowed". Instead there are guide lines in the law that the HOA will make you follow, such as the panels must follow the roof angle, no tilt panels that follow the sun, panel frames and mounts that blend into the HOA color scheme (probably they will ask for black). Stuff like that. The law isn't perfect, there are loop holes in case the HOA is run by jerks. But if you're willing to go to arbitration it is very likely you will win. I'm in Dallas and installed 20 solar panels (5kW) earlier this month. My HOA was very supportive and changed some of the rules due to my suggestions in order to make the process easier.
There's more desert created from bad management than from global warming
Global warming is caused by bad management. Bad management of land (leading to desertification) leads to global warming, both by reducing CO2 fixing and by reducing cooling. Bad management of CO2 leads to global warming. This is not compliated. There is no conflict. What environmentalists are asking for uniformly is good management, which takes the future into account. Not account for CO2 now is almost exactly the same as looting a corporation for short-term profit for the primary investors. Only a minuscule percentage of the affected stand to profit, and even they will suffer in the long term. The difference is that you can just move on and sack another corporation, they'll make another one. We don't have another planet to go to, notably because even if we did, we couldn't get there.
For example, way back when I read some study on Slashdot which claimed a certain amount of arable land would be lost from desertification and sea level rise from 2C rise in temperature over a century. That ended up being about the same area as a year's worth of normal desertification.
Hahahahaha "normal desertification" hahahahahahaha.
No other response to that paragraph is dignified.
"You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
Let me guess, you typed that while staring into a reflective, black screen. Permitting unchecked emissions of CO2 is what's going to cause us the real human misery. Keep telling yourself you can shit where you eat without getting sick, though, while desperately looking around for supporting examples.
So you're telling me that CO2 is what's going to cause the real human misery. Not poor healthcare, not food to eat, not ways to keep things from spoiling. Not having properly developed agriculture or sewage management. Okay there. Next you'll be saying that burning cow dung indoors doesn't cause lung cancer, and sleeping on the ground in a hut covered with shit doesn't cut your life expectancy in half due to parasites. You do realize that in my examples that not even 1/3 of the people on this rock are at this level. If you're lucky you might hit 20%
Except that these are the very people that be affected by the consequences of CO2 emmissions.
My ism, it's full of beliefs.