[ExI] Energy markets
alfio.puglisi at gmail.com
Tue Sep 24 15:25:02 UTC 2013
An interesting article about European energy markets, written by a banker
who finances them:
"The Economic and Political Consequences of the Last 10 Years of Renewable
"...The wholesale market as it was designed 20 years ago (de facto based on
gas-fired plants of various efficiency targeted at different points of the
merit order curve setting up the marginal price) is irreversibly broken.
The system is now dominated by plants with very low marginal cost of
production (but high upfront investment), which means that spot prices are
systematically too low for everybody - you can't invest in plants with high
upfront investments (like nukes), and you can't invest in plants with high
marginal running costs (gas-fired plants) unless you are betting on
persistently low gas prices into the future."
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