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I thought the price of energy was fixed based on the most expensive option available on the market at the time?
I'll give truss credit for looking to break that at least.
Grumpy_Git-
In the U.K. i think thats the price of elec paid to renewable generators is based on the prevailing cost of most expensive producer, as they don’t have “input costs” per se. It is tied to the to most expensive means of production, but that’s set at a global price of units of gas (as that’s what gas power stations have to pay)
Breaking the link between gas price and elec price is good news for renewable generators in a way if they can leverage their cheaper elec to suppliers to pass on with cheaper tariffs. However it also means they can’t sell their elec at the gas inflated price. Interesting piece here: https://www.bbc.co.uk/news/science-environment-62832029
C4r1s
Energy producers will produce whatever is profitable. They’re just in the business of selling fuel to make power. Govt regulation could go some way at forcing them to change (by increasing relative costs of production eg great big carbon taxes), or subsidising the cost of renewables to make it more financially attractive to change.
Some suppliers (Octopus springs to mind) are beginning to have purchase agreements with windfarms; where they agree to buy all energy produced from that farm, and so remove the traditional O&G extractors from the equation. This means cheaper energy for consumers as it isn’t tied to the global market.