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by ZeroGravitas
1019 days ago
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The difference in electricity costs between France and Denmark (and pretty much any other such simplistic comparison you see) is often highly influenced by taxation policy. You can tax energy use to encourage conservation or you can subsidize it via general taxes. https://energy.ec.europa.eu/data-and-analysis/energy-prices-... The wholesale electricity prices in Denmark and France are both directly in line with the EU average. Switch to consumer prices and Denmark becomes the maximum, and France drops below the average. You can see a similar pattern with gas (both natural gas and gasoline) prices, they're roughly the same wholesale but Denmark's consumer prices are higher. |
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The interesting data you linked clearly shows the problem with high mix of renewables: even if the average wholesale price is the similar, the final cost can be way higher because people need electricity at 6 PM and not so much at 4 AM, and the costs of a more unstable system are higher (such as delivery costs). Similar production price, totally different value. That is the difference between LCOE and the costs estimates which include other factors, such as the firming intermittency price estimations published in Lazard 2023.
The similar patter you see in oil and gas could be because of taxes, but the difference is below 10 %, not 200 %.