> Most Europe has way too high electricity prices.
Way to high compared to what? Some countries do not even have a problem with prices but with capacity (Netherlands). They would be willing to pay but they do not have the grid to deliver where the thing is needed, and it's hard to build new grids in high density areas.
> It seems logical that ending the use of existing coal energy infrastructure lead to an increase of prises.
But doesn't this depend a lot on planning and investing in alternatives rather the just closing or not the coal? Sure, if you just close one source and leave everything else untouched prices will increase, but doesn't sound like the smartest approach overall...
Way to high compared to actual cost. Almost half of fuel and electricity costs in Germany is tax.
If it's due to tax it can't be used to advocate the pros or cons of market arrangements, since we don't know what the market would be doing in the absence of the tax.
It's because of the rules of the European Energy Market where all electricity has to be as expensive as the most expensive source.
So as soon as Germany lights up their gas powerplants, that follow gas prices (wars, etc), French nuclear electricity has to be sold for the same price.
> rules of the European Energy Market where all electricity has to be as expensive as the most expensive source.
aren't all/most electricity market working this way (pricing based on marginal price, aka pay-as-clear)?
pay-as-bid has other potential issues and might not be better.
Yes, but that's assuming that there should be a free electricity market.
The fundamental issue with electricity markets is that they cannot rely on any signal other than the electricity price to control whether a given plant will be running at a given time or not.
I think a real alternative would be to set-up an entity charged with negotiating prices with the electricity producers (which would also be a sort of partial reversal on the whole market thing in a lot of countries).
>It's because of the rules of the European Energy Market where all electricity has to be as expensive as the most expensive source.
Are you talking about the marginal cost? Don't blame the govt, blame the economics textbook.