German energy giant RWE has begun dismantling a wind farm to make way for a further expansion of an open-pit lignite coal mine in the Western region of North Rhine Westphalia.

German energy giant RWE has begun dismantling a wind farm to make way for a further expansion of an open-pit lignite coal mine in the western region of North Rhine Westphalia.

I thought renewables were cheaper than coal. How is this possible?

  • PowerCrazy@lemmy.ml
    84·
    1 year ago

    Why not introduce a coal tax of 1million per ton, no need to modify the contract at all. If they want to pay 1million per ton to mine the coal, RWE is more then welcome to do so. It is their legal right after all.

    • rustydrd@sh.itjust.worksEnglish
      2·
      1 year ago

      This would likely end up hurting consumers more than RWE, because the “merit order” pricing system sets electricity prices depending on the production cost of the most expensive unit of electricity that is being consumed at a given time (usually coal). So raising the production cost of coal-based electricity sadly will also raise electricity prices, so long as renewables don’t take over a larger share of the market.

      • PowerCrazy@lemmy.ml
        14·
        1 year ago

        I mean of course it would hurt consumer absent government intervention, that is the design of the market system. Socialize costs, privatize the profits. But it doesn’t HAVE to be that way if Germany actually wanted to go green.