01 Mar '12, 1am

How German Solar Has Made All German Electricity Cheaper

How German Solar Has Made All German Electricity Cheaper

A study finds solar lowered the price of peak electricity in Germany by over 40 percent. Solar produced about 3% of industrious Germany’s total electricity, but when it produced it matters more than how much , because of a utility ranking system for putting the most cost-effective power on the grid, called the Merit Order ranking, used in Germany and many EU nations to keep prices low. The Fraunhofer Institute found that – as a result of the Merit Order ranking system – solar power had reduced the price of electricity on the EPEX exchange by 10 percent on the average, with reductions peaking at up to 40 percent in the early afternoon when the most solar power is generated. Here’s how the Merit Order works. All available sources of electrical generation are ranked by their marginal costs, from cheapest to most expensive, with the lowest having the most merit. The marginal c...

Full article: http://cleantechnica.com/2012/02/29/how-german-solar-has-...

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