Isn’t peak consumption around middle of the day for most countries?
I can’t speak to other countries, but in the US peak electricity demand generally occurs in the early evening.
Mfw electricity being cheap to generate is not economical
Cheap electricity is great for consumers, but not necessarily for producers. Some people might say, “well, screw producers,” but even if you take profit out of the equation, electric utilities need to be able to at least cover their expenses, and you can’t do that if the amount of electricity you’re generating relative to the demand is so high the price actually goes negative (meaning the utility is actually paying the consumer). Again, that’s good for consumers, but I’m sure you can see how that’s not a sustainable business model. And, like I mentioned before, it would be one thing if utilities could make up for this by selling for a higher price during peak, but by that point the sun is either setting or already set, depending on the time of year, so there’s just no solar electricity to sell, at any price.
Cheap electricity is great for consumers, but not necessarily for producers. Some people might say, “well, screw producers,” but even if you take profit out of the equation, electric utilities need to be able to at least cover their expenses, and you can’t do that if the amount of electricity you’re generating relative to the demand is so high the price actually goes negative (meaning the utility is actually paying the consumer). Again, that’s good for consumers, but I’m sure you can see how that’s not a sustainable business model.
Fully agreed: let’s eliminate business from the issue, and create national, for-service electric grids, that produce the cheapest renewables at all possible times in the most efficient way possible, disregarding hourly profit and taking into account exclusively the cost in €/kWh produced over the lifetime of each energy source.
Suddenly it’s obvious that the problem isn’t with renewables, but with organising the electric grid as a market
Public utilities still need to cover their expenses, and they’re not going to be able to do that if they’re charging negative rates in the middle of the day and have no electricity to sell once the sun goes down.
Do I really need to explain the concepts of taxes, subsidies, or fixed prices regardless of demand, to an adult?