Comment by roenxi
8 hours ago
They aren't orthogonal - the reason that gas is being used is because renewable can't reliably power the grid! If you look at something like https://grid.iamkate.com/ you can see that in the last 24 hours the gas peak is when the wind dies down and the sun isn't shining, around 6-8pm. Happens to be a real price peak at that time. This isn't some weird and unexpected outcome, we've had at least a decade of evidence with this sort of low-wholesale-high-retail price dynamic.
That isn't gas is expensive, it is simply policy that the UK, rather naively, is trying to run their grid 24/7 based on processes that are not available 24/7. That is an expensive trick to try and pull off. Poor people need a way to signal that they won't use electricity in the evening if they want to be able to afford power is my read on the situation. Not very civilised but if that is how the UK approaches reliable cheap energy as a target then it seems the most reasonable outcome.
Unfortunately for the UK, its geology means there isn't a lot of pumped hydropower storage unlike France, which is the cheapest way to bank intermittent renewables. In the places where there is pumped hydro capacity like Coire Glas, the operators are demanding the government guarantee they would be paid today's (natural gas generated) price to go ahead with construction, which would completely defeat the purpose of energy storage.
And yes, letting nuclear power dwindle was a political choice, spurred by short termist bean-counter thinking:
http://www.stross.org.uk/charlie/old/rant/torness.html
Seems like a very good case to get storage and power backup in people's homes. Industrial users could install their own gas fired generators. Residential consumers could have simple battery based backup, or even a generator which would double for helping during powerouts.
Bigger question is why they haven't already - these trends have been in place for a very long time and this current phase of the UK energy crisis has been on display for years. Anything legal and cost effective would have been done by now if the market had anything to say about it. Which suggests something odd is afoot. Maybe storage is more expensive than gas, maybe the UK government has regulated the option out of existence. Maybe something else.
Probably because it doesn't make economic sense to install storage prior to renewables being so substantial that you start having to curtail.