The European Tribune is a forum for thoughtful dialogue of European and international issues. You are invited to post comments and your own articles.
Please REGISTER to post.
just wondering if there may be some justification in legacy carbon based generators feeling used because they are expected to be available to provide base load at any time wind etc. doesn't,
What ticks off the baseload coal burners is not that they don't get to provide baseload. Because they do. It is that other people get to provide baseload as well.
A newly built coal-burner has similar economics to a wind farm - high up-front costs, low(ish) variable costs (if you exclude the subsidy-by-dead-Chinese-coal-miner). Which means that insistence on marginal pricing locks out new coal almost as effectively as it locks out new wind.
... but fully amortised coal has an equity cushion to survive higher volatility. Which means it gets to benefit from the higher average prices (due to the lock-out of capital intensive low average cost producers). If you repair the market structure to allow wind farms in, you undercut that particular source of rent for old, fully amortised coal-burners.
Friends come and go. Enemies accumulate.
by joelado - Oct 20 7 comments
by Frank Schnittger - Oct 19 19 comments
by Frank Schnittger - Oct 16 7 comments
by Frank Schnittger - Oct 14 1 comment
by Frank Schnittger - Oct 5 113 comments
by DoDo - Oct 2 10 comments
by gmoke - Sep 27 9 comments
by joelado - Oct 207 comments
by Frank Schnittger - Oct 1919 comments
by Frank Schnittger - Oct 167 comments
by Frank Schnittger - Oct 141 comment
by Frank Schnittger - Oct 5113 comments
by DoDo - Oct 210 comments
by gmoke - Sep 279 comments
by gmoke - Sep 25
by Frank Schnittger - Sep 17162 comments