China to switch from FITs towards Market-oriented pricing.

[Adokforme]

China to switch from FITs to market-oriented renewables pricing

I'm not totally sure but suspect this may lead to lower energy prices for them and while making investors nervous would presumably keep China cost competitive to the rest of the world or at least those relying on FF's!
Happy to learn of others thoughts on the matter.

https://www.pv-magazine.com/2025/02/12/ ... -159300013

[Stinsy]

I think our current energy policy is the worst of all worlds!

Renewables are cheap! We have to let consumers and businesses see the benefits of renewables in their bills.

At the same time, there has never been a rich country with high energy prices. Prosperity has always been linked to low energy prices.

I know we got a SS today, but we should've had several a week all winter. The same is true the other side when it is windy and demand is low. Why pay wind turbine operators to switch off when we could give away free electric.

So IMO market based pricing is the way forward. We just need to remove the friction in our energy markets.

[Ken]

I know we got a SS today, but we should've had several a week all winter. The same is true the other side when it is windy and demand is low. Why pay wind turbine operators to switch off when we could give away free electric.

So IMO market based pricing is the way forward. We just need to remove the friction in our energy markets.

What is SS ?

Most of the curtailment is due to the transmission lines being at max. I dont see how the price of leccy would change that, free or otherwise. A large chunk of curtailment will cease when the East coast connectors get built.

Market based pricing implies there is competition in the market place but there is only one product with no variation.

Not sure what peoples vision of "market pricing" . In China it means the gov NOT setting a price for leccy but allowing market forces to intervene in some way. In most cases around the world of capped pricing of anything leads to a lower artificial price to placate the people who think it "grows on trees" but the taxes are used. You dont get ought for nought.

We already have competition where the suppliers all bid into the market and the cheapest are chosen in priority to the more expensive by the process of "merit order bidding" and then everybody receives the higher price. The process of merit order bidding MOB i have to say does work and the UK possibly has the most reliable system in the world. For years as RE increases they have been going on about MOB giving us higher prices than need be
but nobody seems to come up with a better way, because basically reliabilily costs.

[Moxi]

Hi Ken

I think SS is saving session

Moxi

[Stinsy]

Hi Ken

I think SS is saving session

Moxi

This

[Stinsy]

I know we got a SS today, but we should've had several a week all winter. The same is true the other side when it is windy and demand is low. Why pay wind turbine operators to switch off when we could give away free electric.

So IMO market based pricing is the way forward. We just need to remove the friction in our energy markets.

What is SS ?

Most of the curtailment is due to the transmission lines being at max. I dont see how the price of leccy would change that, free or otherwise. A large chunk of curtailment will cease when the East coast connectors get built.

Market based pricing implies there is competition in the market place but there is only one product with no variation.

Not sure what peoples vision of "market pricing" . In China it means the gov NOT setting a price for leccy but allowing market forces to intervene in some way. In most cases around the world of capped pricing of anything leads to a lower artificial price to placate the people who think it "grows on trees" but the taxes are used. You dont get ought for nought.

We already have competition where the suppliers all bid into the market and the cheapest are chosen in priority to the more expensive by the process of "merit order bidding" and then everybody receives the higher price. The process of merit order bidding MOB i have to say does work and the UK possibly has the most reliable system in the world. For years as RE increases they have been going on about MOB giving us higher prices than need be
but nobody seems to come up with a better way, because basically reliabilily costs.

At the moment we have the FF companies fixing the price of energy. Resulting in the below:



Sure there are some problems getting the wind-generated electric from Scotland to London. However, we have plenty of people and businesses outside of London who we could supply free or ultra-cheap electric when there is a glut. The same on the other side. When demand is high and generation is low surely it'd be better to pay people and businesses to use less rather than pay FF companies north of £1 a kWh to pollute the planet?

Unfortunately, we have the vested interests of FF companies and their influence on politicians and regulators creating friction in the market.

Octopus is a great example of how the free market stokes innovation. And Greg has long argued for regional pricing. It'd be great if the regulator would get out of the way...

[Moxi]

all of which beggars the question of why NESO keep ignoring the option to pay the FF producers instead ?

who was it from the other place that used to speak about brown paper bags ?

Moxi

[Fintray]

all of which beggars the question of why NESO keep ignoring the option to pay the FF producers instead ?

who was it from the other place that used to speak about brown paper bags ?

Moxi

That would have been Martin but brown paper envelopes, of course with inflation the price of giving someone a bung possibly needs a bag now!

[Moxi]

ahh Good memory Fintray - yes Martin and oops yes envelopes that seems a life time past now and how the renewable scene has shifted and prices dropped!

Thanks

Moxi

[Mart]

I watched this recently from TLDR News, about UK leccy pricing. It was about my level, nice and simple:

Why the UK Needs Lower Energy Prices