Why solar energy is more expensive than coal in Germany

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"... Electricity is not a product

Electricity is often treated as a commodity or a product. A unit of energy sold at a price per kWh.

In reality this is not correct as electricity is a service provided on demand 24/7/365.

Therefore, it must be delivered reliably, at the right voltage, frequency, phase, and current every millisecond of every day. That requires a highly complex system made up of generation, reserve capacity, storage, transmission networks, and stability mechanisms.

Once you look at electricity this way, the question to be asked, changes quite a bit.

We are no longer just asking “what does this technology cost?” but rather “what does it cost to make the entire system work?” Because what would you do with electricity if it is not delivered to your location, ready for use? ...

Even institutions like the OECD and UNECE now acknowledge that increasing the share of wind and solar can raise total system costs  ... Not because the technologies themselves are inherently flawed, but because they require additional infrastructure and support to function within a stable grid. ...

The paradox of adding more wind and solar

At first glance, expanding wind and solar seems like a straightforward path to cheaper and “cleaner” energy…but systems rarely behave that simply.

As their share increases, the cracks start to show….

• additional balancing and backup capacity is required
• grid infrastructure must expand and become more complex
• storage becomes a necessity and eats away at the generated energy
• market value declines through falling capture rates and the list goes on

…"

Why solar energy is more expensive than coal in Germany "The more solar and wind energy is deployed, the more it reshapes the system around it and the more costs shift into areas that are often not immediately visible but should be considered, says energy expert Lars Schernikau."