Well, don’t expect renewable energy to behave in the same way as nuclear, gas, oil and coal! Actually all sources of energy have pros and cons. Nuclear is good, apart from cleaning up after decommissioning. Coal power stations cannot respond quickly to rising and falling demand, and are polluting. Oil provides better response but is more expensive. Gas is excellent because turbines can be fired up and down very quickly. And since 1990, gas has been very cheap. Unfortunately low cost of gas is not guaranteed in perpetuity, and some suppliers are politically unreliable.
Energy has always been provided by a basket of different methods, and the methods are changing. In the UK Town Gas is long gone, and Coal is now miniscule. Oil and natural gas are both problematic, unless the source is local. We have to change.
Renewable energy is free in the sense that no-one has to be paid to extract and transport millions of tons of coal, oil or gas. Fossil fuels require a lot expensive middlemen, services and infrastructure between consumer and source. In contrast renewables are simpler, going straight to electricity, which can be fed into the grid. Though connecting to the grid is expensive, renewable electricity is still cheaper than other sources. And much less polluting than burning carbon. Whilst many don’t believe in global warming, they are wrong. Failing to understand a problem does not fix it.
The disadvantage of renewable energy is it comes and goes depending on the weather and the planet’s position – sunshine, wind, tides, rainfall etc. Dirt cheap, but not necessarily available when needed. Therefore, some form of storage is needed. Nothing new in that: Dinorwig exists because off-peak nuclear and coal power was used to pump water into a huge mountaintop reservoir, and discharged to top up the grid later. Though horribly inefficient it was cheaper to burn coal continually during the night and pump water than it was to crank large boilers up and down.
Many storage options. Using excess electricity to electrolyse water into Hydrogen and Oxygen; making Ammonia or Sodium; pumping water uphill; pressuring gas; heating cast-iron blocks; charging batteries etc. Giant batteries need not be expensive. Expensive Lithium is needed for cars because it has a high energy density, but lower density storage is OK in a fixed installation, where Sodium is good enough. Sodium is dirt cheap, especially when made with surplus renewable electricity…
The high cost of fossil fuels makes negative prices unlikely, though it can and does happen. Oil went negative in the US a few years ago because deliveries exceeded the available storage capacity, making it necessary for those contracted to store it to pay someone to take it away! How markets are organised is important, and it’s not right yet, nor is the technology fully developed, and nor is the infrastructure in place.
But, there is nothing in switching to renewables that’s beyond the wit of man, either technically or in the mechanisms used to buy and sell it. It will be different though.
What Octopus are doing makes sense in the context of how they buy and sell energy. They wish to attract new customers, and will almost certainly be offering variable rate tariffs (via Smart Meters) that encourage customers to consume electricity when it is available, by dropping the price. Very similar to Economy 7, though more agile. All suppliers are going that way, step by step, so as not to frighten the horses, or make a major expense.
One thing for sure – burning fossil fuels isn’t sustainable. In only 30 years, oil and gas will run short. Sadly prices skyrocket when demand permanently exceeds supply. I’ll probably be dead before petrol become unaffordable but my children will have to find alternatives. Coal, gas and oil did us proud in the past, but they are finite natural resources. God isn’t making any more…
Dave