Disclaimer: OP doesn’t support CCP or authoritarian communism.

TLDR Despite significant advancements and price drops in renewable energy sources, the lack of profitability compared to fossil fuels hinders investment and expansion. Factors like unbundled energy markets, volatility in pricing, and reliance on private investment further complicate the transition. The narrative calls for a reevaluation of energy production systems, advocating for state-led, publicly funded renewable projects to ensure a viable path toward sustainable energy solutions.

  • poVoq@slrpnk.netM
    19·
    4 days ago

    Ok, lots to unpack in this video, but the primary issue is that it is highly US centric and doesn’t apply very well to other large electricity markets like the EU.

    Here in the EU there is already a very high percentage of renewable electricity generation, often exceeding 70% of the total.

    But we have hit a wall not because of too much competition or low profitability, but the exact opposite.

    In the EU the power generation is primarily owned by a few large companies, basically an oligopol. These own both large renewable and fossile fuel plants.

    The video is correct in how it describes how electricity spot markets function, but has a blind spot in how it can be gamed if a few large companies conspire in keeping the electricity a mix.

    By ensuring the demand is rarely fully covered with cheap renewables, but rather keeping a few expensive to run gas-fired plants in the mix, they can collect the price for the gas powered electricity even for the cheap renewables and thus make record profits as long as they keep the market captured like that.

    As a result electricity prices for private and industrial consumers are high, despite a large percentage of cheap renewables, and this is a huge barrier for the much larger non-electricity energy consumption sector to electrify.

    • ujeenator@lemm.eeOP
      2·
      4 days ago

      but has a blind spot in how it can be gamed if a few large companies conspire in keeping the electricity a mix.

      Interesting, thank you for insights, is there anybody on youtube or podcasts who provide any analysis on this topic for EU?

      As a result electricity prices for private and industrial consumers are high

      Does that mean, that it may be cheaper for them in advance, to build their own solar plant + large energy storage? e.g. with 3-5 years ROI

      • poVoq@slrpnk.netM
        3·
        4 days ago

        Yanis Varoufakis has done a few interviews and videos on the topic which you can find on YouTube.

        Some industries are doing that, yes. But due to very low natural gas prices until 2022, much of the industry has slept on the issue and now with general economic headwinds are not necessarily prioritizing such investments due to other bigger problems.