Renewable Energy Costs

YLee

Does anyone know why, being on a 100% renewable electricity tariff, we are subject to the same price fluctuations in price of the whole energy market? Has wind, water and sunlight become more expensive of late? Obviously being a bit provocative with the question and I appreciate that the cost is not solely for the generation of the electricity, but does the cost of oil and gas (and presumably nuclear) have more influence on the wholesale energy price than it should?

QrizB

Electricity generators sell their power for the best price they can get.

If fossil fuels go up in price, electricity from fossil fuel generating plants goes up in price. Wind and solar generators will be able to charge that same higher price, increasing their profits (or, in many cases, decreasing their subsidies).

greenguppie

YLee said:

Does anyone know why, being on a 100% renewable electricity tariff, we are subject to the same price fluctuations in price of the whole energy market? Has wind, water and sunlight become more expensive of late? Obviously being a bit provocative with the question and I appreciate that the cost is not solely for the generation of the electricity, but does the cost of oil and gas (and presumably nuclear) have more influence on the wholesale energy price than it should?

I know have admitted to being provocative in asking this, so please allow me to be equally provocative in reply.

If only energy suppliers could offer us a fixed rate tariff, eh?
Something where the tariff is fixed for say 12m, 24m, 36m?

But to address your question more precisely, yes the cost of renewable energy does vary considerably.
e.g. when it it particularly windy the price of electricity usually falls dramatically.  Sometimes they even pay you to consume the electricity. Yes, negative electricity pricing.
When there is no wind, there is no electricity generated by the wind farms.

I guess the same would apply for solar.

When no renewable energy is being generated, the network still relies on other forms of electricity generation. So they put their prices up. Supply & demand.

What may be a concern is that as more and more renewable energy generation comes on stream, then the requirement for other forms of electricity generation is diminished.
So there is even more demand on those remaining electricity generators when the wind and sun fails us. That pushes the price rises even higher. Supply & demand, as I said.