Why you owe power companies a living

Europe's power utilities have seen their profits plunge at the hands of growth in solar and wind power and drops in demand. Apparently we should be worried that this means the lights are about to go out and emissions will go up in Australia. What the?!

Regular readers of Climate Spectator will be very familiar with how the profitability of major power generators in Europe has been hammered by the growth of renewable energy and a drop off in electricity demand. This has been a particular issue in Germany, where rapid growth in solar has acted to depress prices in the wholesale electricity market, such that gas generators are losing money and coal generators are only barely covering their costs.



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