Fact or fiction: Fossil fuel power plants going bust?

By | November 14, 2012

This sounds hard to believe: fossil fuel power plants are running at a loss. According to the article, renewable energy sources have driven the cost of wholesale electricity prices down.

I'd personally like to see some figures to back it up. Energy prices in the last years have only gone up faster than inflation, and show no signs of letting off in the rampant increase. Perhaps it is due to carbon taxes on fossil fuel power generation and subsidies for solar power generation, but this isn't transparent to the end consumer.


Reshared post from +Russell Davison

Renewables growth in Europe lowers wholesale electricity prices
The fast growth of renewable energy generation in Europe has pushed down wholesale electricity prices in recent years. The profitability of fossil fuel generated electricity has gone down as renewables have grown. This means some power stations are operating at a loss, and may close. A number of fossil fuel power generators in Europe are now running at a loss. With less demand for the electricity they produce but the same fixed costs, some are struggling to stay afloat.

5 thoughts on “Fact or fiction: Fossil fuel power plants going bust?

  1. Hervé Musseau

    +Sophie Wrobel Some fossil fuel plants (and nuclear as well) are having profitability issues due to renewables, but it is not because renewables are driving prices down. It is not exactly due to subsidies and taxes, either. It is due to the fact that in most countries renewable energy has been mandated as prioritory, and must be distributed over any other energy when it is available; because it is irregular in nature, that means that other means of production, which should (and are capable of) offering continuous baseload power, must shut down and restart later. They are not allowed to produced continuously yet still have their fixed costs to pay. It wrecks their economic model. If anything it is worse for nuclear plants, as they have high fixed costs and low fuel costs, not to mention slow start and stop times.

  2. Nandlal Shah

    They must be doing something interesting 'coz we have in USA deficient in energy price in compare with natural gas, coal and nuclear. I think administrator must be looking into their way of doing things…


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