8 Comments

Thanks for an really interesting analysis.

Could be very interesting to have your updated analysis of Germany at the 1 year anniversary of their "Atomausstieg"?

German government take is that it's all good:

"We see today that the electricity supply remains secure, electricity prices have fallen even after the nuclear phase-out and CO₂ emissions are also falling."

https://www.zeit.de/wirtschaft/2024-04/strompreise-robert-habeck-atomausstieg

Factors such as decreasing NG prices, deindustrialization etc are of course not mentioned as contributers to their apparent "success story".

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Thank you for sharing your analysis! In the day-ahead market, what happens when a generator’s bid is accepted, but then they can’t deliver? E.g. thermal generators have mechanical issues or the wind doesn’t blow as much as expected.

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author

Any difference between what was foreseen and the reality is taken over by the balancing market. Let's say that a company with a specific portfolio (generation + load) is 100 MWh short, it has to pay to the transmission system operator 100 MWh * balancing price.

Balancing price for Germany: https://www.netztransparenz.de/de-de/Regelenergie/Ausgleichsenergiepreis/AEP-Sch%C3%A4tzer

Balancing price for Belgium: https://www.elia.be/en/grid-data/balancing/imbalance-prices-15-min

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Somewhat related -- a wind farm in Sweden is facing bankruptcy because it had to buy electricity on the market to fulfill a PPA: https://twitter.com/simonwakter/status/1723629529833378128

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Thank you! I was wondering if there were financial incentives for generators to over promise but under deliver. Clearly that’s not the case. Great!

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Very interesting and useful, thanks. It will be interesting to see what happened during a colder winter. The difficulty is that it is hard to take any long term lessons as (i) penetration of renewables is moving each year, and (ii) weather a season is unusually hot/cold has a strong influence on imports and exports, and (iii) we're still in the post-Ukraine war disruptions to the system. Do keep on doing this analysis, it is important information.

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Thanks. Indeed, it is hard to do long-term conclusions, even short-term to be honest.

Let's see this winter already how it goes.

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Oct 3, 2023Liked by Julien Jomaux

Thank you, I will read it and re-read it. There is a lot of useful information here. Everyone is going to have to get smarter about energy.

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