While beneficial to consumers who are able to take advantage, for example by charging an electric car or running appliances, it also threatens to undermine the viability of Europe’s renewable energy projects, which are critical to hitting net zero targets.
“It’s akin to a hara-kiri,” said Bjarne Schieldrop, chief commodities analyst at Swedish lender SEB “Everyone knows that if you produce too much oil, the price will crash and producers lose money. And there’s nothing different in renewable energy and power either.”
I almost can’t believe the absolute shitiness of this. I suppose the implication is why would producers build power stations (no doubt with govt. subsidises!) if they can’t make a profit!
Europe is suffering a very severe Hydrogen shortage. What it takes to produce Hydrogen? Water and lot’s of cheap energy.
If capitalism self regulates as the Financial Times so often claims… the big energy producers should get at it. Surely they can make more money producing Hydrogen than paying industries to consume electricity.
Right now Hydrogen and many other chemicals are mostly byproducts of the oil industry, let’s move away from fossil chems.