It’s a great point, does seem strange that renewable prices are correlated/driven by non-renewable price drivers.
It does work both ways though, renewable electricity generation can cause huge price decreases for overall electricity prices (mostly on the short term prices) due to:
- High forecast windy days
- Days with high solar generation
- More future supply capacity of renewable energy, so plans for a huge wind farm to be online in 2020 may cause prices for Winter 2020 to be lower
One way that renewable generation can be excluded from exterior price influences is by the energy company owning the generation equipment. This is called Vertical Integration: https://www.energyvortex.com/energydictionary/vertical_integration.html
I think Dieter Helm is going to cover this a lot better than I can in this post. Here’s some afternoon reading for you on the topic you brought up: http://www.dieterhelm.co.uk/energy/energy/what-future-for-vertically-integrated-energy-companies/
We used to have a rule about only sending links if you have read the whole article, I admit I broke the rule here but there are plenty of members to get back today.