Rationalising the energy prices

While European governments are running around like headless chickens in an attempt to lower energy prices, in an attempt to avoid uproar when winter kicks in, let us shed some light. Gas prices are determined by international market mechanisms. The price follows the demand, and it is even so influenced byfutures, availability of distribution channels,… Continue reading Rationalising the energy prices

Categorized as Strategic

Electricity price mechanisms

On the European market, the price of electricity is “determined” by the marginal cost of the “last” kWh that is produced to fulfil the “immediate” demand (making abstraction of the grid latency). In practice, our national grid is supplied by large nuclear power plants producing the 6GWe base load, with an all-time, all-included production cost of… Continue reading Electricity price mechanisms