In line with previous post, there is this article from a Dutch newspaper titled “Engie can not pay for major maintenance of gas-fired power plants anymore” (translated from Dutch). Philip Pouillie (CEO of Engie Benelux) explains that his company can’t afford to pay for the periodic maintenance of their gas-fired power plants anymore, delaying them as long as possible because they expect not to be able to earn back that money anymore. This is the reason that is given (translated from Dutch):
Engie has suffered from the low electricity price. That is a result of the growth of sustainable energy, the cheap power from coal, over-capacity and cheap import power from Germany. But the gas-fired power stations should, according to the energy companies, continue to run as ‘back up’ during the transition to wind and solar energy that will get shaped in the coming decade.
Another newspaper from the Netherlands explained it in a similar way:
The revenue of the [gas-fired] plants is too low to pay back the investment in major maintenance, the French energy giant expects. That is partly due to the low electricity price, overcapacity on the Dutch market and the production of renewable power. Electricity generated by gas turbines is relatively expensive compared to electricity from other sources, such as wind, sun and coal.
It is somehow suggested that alternative energy in combination with coal, overcapacity and import from Germany are causing these cheaper prices, therefor pushing gas-fired power plants out the market and now it are those gas-fired power plants that need to be supported. In the first article it also seems to be suggested that gas is only needed in a transition period, that in the future wind and solar can somehow do it on their own.
You could argue that decreasing prices are a good thing, whether it is due to sustainable energy, overcapacity, cheap import power from Germany or whatever. If these lead to low electricity prices, then let’s get more wind and solar… Unfortunately, as usual in alternative energy reporting, both articles only tell half of the story.