Germany’s Solar Expansion And The Negative Effects Of Electricity Overproduction

Amidst the push for more low-carbon energy, we see the demolishing of one of the pillars of electric grids: that of a careful balancing between supply and demand. This is not just a short-term affair. It also affects the construction of new power plants, investments in transmission capacity, and so on. The problem with having too much capacity is that it effectively destroys the electricity market, as suppliers need to make a profit to sustain and build generators and invest in transmission capacity. This is now the…