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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsGermany's glut of electricity is causing prices to fall
Germany is headed for its biggest electricity glut since 2011 as new coal-fired plants start and generation of wind and solar energy increases, weighing on power prices that have already dropped for three years. From December capacity will be at 117% of peak demand. The benchmark German electricity contract has slumped 36% since the end of 2010. "The new plants will run at current prices, but they won't cover their costs" said Ricardo Klimaschka, a power trader at Energieunion GmbH. Lower prices "leave a trail of blood in our balance sheet" according to Bernhard Guenther, CFO at RWE, Germany's biggest power producer. Wind and solar's share of installed German power capacity will rise to 42% by next year from 30% in 2010. The share of hard coal and lignite plant capacity will drop to 28% from 32%.
http://news.slashdot.org/story/14/06/28/0045250/germanys-glut-of-electricity-causing-prices-to-plummet
Electric Monk
(13,869 posts)FrodosPet
(5,169 posts)I hope it isn't a scenario where everyone is losing so much money that the system economically collapses and the BIG pockets come along, scooping up the entire infrastructure for pennies on the dollar.
Electric Monk
(13,869 posts)JDPriestly
(57,936 posts)It all depends on how they manage it. The result could be good or bad. It is a matter of organization, cooperation and good use of resources -- precisely the best qualities of the Germans.
Uncle Joe
(58,481 posts)Thanks for the thread, emsimon.
defacto7
(13,485 posts)I thought the idea was to increase wind and solar output in exchange for fossil fuel eventually putting the coal industry out of business. I had no idea they were supposed to increase electrical usage proportional to the amount of added non fossil fuel sources. I thought the idea was a better world.
Why the hell are they making new coal-fired plants?
BTW, balance sheets don't bleed, people bleed. Are they supposed to apply first aid to their books or keep people and the planet from suffocating?
B Calm
(28,762 posts)stop dragging us behind. .