10 Dec '13, 4pm

What Happens When the Price of Energy Falls to Zero?

What Happens When the Price of Energy Falls to Zero?

One of the big questions about scenarios for 100 percent renewable energy production is how to structure the energy market. We now know that having electricity supplied to a major economy entirely by renewable energy sources is possible, and most likely no more expensive than building new fossil-fuel generation. What we don’t know is how to structure the energy market so it provides the right incentives. If the marginal cost of solar and wind energy is close to zero (because there is no fuel cost), then the energy price in a 100 percent wind and solar market is going to be zero -- at least in the current market structure. But who would invest? This is one of the major questions being put to regulators and policymakers around the world, but the country most in the firing line is Germany, one of the world’s most successful industrial nations. It’s not that Germany is about t...

Full article: http://www.greentechmedia.com/articles/read/what-happens-...

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