Video explains how the UK's wholesale market for electricity works and why the wholesale price is often defined by the price of generating electricity using gas,
Thank you. The free market section went like a light bulb in my head. This explains energy company massive profits for the last two years despite cost of living crisis.
For a snap shot of supply mix UK energy dashboard site is available,on average it sits around 30% gas 20% imports 15% wind 10% solar 10% nuclear 5% other each source adjusting depending on time of day, weather
Thanks ... that's a really interesting website ... for anybody else reading this comment the link is www.energydashboard.co.uk/live When I was looking at the website the UK was importing 17.5%. I know we import electricity but I am surprised how much we import.
Actually Norway production is mostly hydro. Little of imported electricity comes from fossil fuel. Interestingly there are some occasions when UK exports electricity even to France and Norway although overall we are net importers.
@@johnrubber1144 I'm an ex offshore north sea oil and gas electrical and offshore wind technician (both surface and seabed) who was in volved in the replacement of BP Vanguard (Norwegian sector of the north sea).....please state your sources, are you aware that the UK has to pay to export excess wind generation capacity (class 3 supply) paying upto x50 the average rate for the continent to accept that supply?🤔
Renewable prices are pre agreed, aren't they ? They aren't cheap . About £70 /mw , and we have to pay this regardless of use and is only dependent on the ability to generate . Which is why they are used is preference
It’s not set by the price of gas, it’s set by the marginal plant. It often happens to be Gas, but that’s time and location dependent. The price is perfectly fine and would arise in any open market as a signal for investment in other sources of generation.
I agree that the price of electricity is not set by the price of electricity generated by gas ... at 1m37s I said "... could not understand why the wholesale price of electricity in each 30minute period is the price of the most expensive electricity supplied during that period." My graphics only show gas, wind and solar ... but the graphics are just graphics to illustrate what I am saying. I am not trying to say its always gas with the graphics .... but as you say it often is the price of gas so the graphics are illustrating a typical situation.
I've just found this video, which does make sense, apart from one bit. The renewable energy markets are sold as cfd's so the government guarantee a cost say £50 per mwh, then if the price is over this then they get the difference. So, surely all of these profits went to our government last year, but if this was the case then you would have thought we'd have some extra money. So I'm still confused at how it works
