German utility giant EOn loses €67 million on 2012 renewables generation
"EOn continues to struggle under German energy policy, with gas generation made 'barely profitable' by pro-renewable market arrangements and nuclear generation slashed and taxed by government decree.
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One problem is that renewable generation is given priority access to the grid when it is available. This sometimes prevents gas-fired generation from operating during peak hours and has altered the economics of gas to such an extent that it is now 'barely profitable to operate,' said CEO Johannes Teyssen. 'In most European markets, the gross margin for gas-fired units is approaching zero or is indeed already negative.'
'Paradoxically, this benefits carbon-intensive lignite-fired assets which are more harmful to the earth's climate, whereas flexible, climate-friendlier assets are barely profitable,' said Teyssen."
http://www.world-nuclear-news.org/C_Coping_with_energy_transition_1411121.html