> On the energy markets in Europe, at least the one Germany is connected to, the prices per kWh are calculated basedbon generation costs. Meaning investments and fox costs are not considered.
Nope. Definitely not.
Prices are based on a) fixed-price contracts that are negotiated with energy-producers and b) an spot-price auctioning model that is based on supply/demand. As an energy reseller, what you cannot get with your long-term contracts you have to make up with spot priced. With some additional provisions: Renewables get fixed prices (determined by bid) by lay by their regional reseller. And the highest spot price is always paid out to all lower-priced energy producers.
But in all that, no energy producer will leave out the building and financing cost from their price calculation. Otherwise e.g. renewables would be free, because their generation cost is practically zero, no people or fuel to pay for, just building and financing.
Fixed prices =|= fixed costs. And yes, spot prices actually do exclude those. Sure, companies do include those in their internal calculations. The energy markets don't care. And yes, the results of this are funny. E.g. closing down gas plants without a single opertional hour because they are just not able to operate economically.
Nope. Definitely not.
Prices are based on a) fixed-price contracts that are negotiated with energy-producers and b) an spot-price auctioning model that is based on supply/demand. As an energy reseller, what you cannot get with your long-term contracts you have to make up with spot priced. With some additional provisions: Renewables get fixed prices (determined by bid) by lay by their regional reseller. And the highest spot price is always paid out to all lower-priced energy producers.
But in all that, no energy producer will leave out the building and financing cost from their price calculation. Otherwise e.g. renewables would be free, because their generation cost is practically zero, no people or fuel to pay for, just building and financing.