I can’t understand why prices are going up. I read that the price of oil and gas has increased and as it is traded in dollars the fall in the pound has also had an effect. But renewable energy is not affected by oil and gas prices so why are the producers putting their wholesale price up when their costs are not changed. This seems like profiteering
Hi @cliffshena, there’s just one market for energy and everyone who sells it sells at the same price. The price that energy is worth at that moment in time. There isn’t one market for green power and one for other power unfortunately.
The silver lining to this is that investors in renewable energy generation get a better return on their investment. Which in turn encourages more people to invest in generating renewable energy.
I would have thought it would be in both investor and consumers’ interests to fix prices for a long period thus giving certainty to investors for a safe guaranteed return and for consumers not to be at the vagaries of ups and downs of the chaotic oil market
It definitely has its advantages to fix, and some generators do indeed do that. Others see more advantage to be had by following the wholesale market closely. It depends on what each investor wants to achieve. And even then, fixed prices only last for a limited period, before they jump back up to the market value.