2023-07-16 11:12:32
Jul 16, 2023 at 12:42 Update: 31 minutes ago
Electricity prices on the spot market in many European countries, including the Netherlands, will fall below zero this weekend. This happens because there is a lot of wind everywhere, while in the summer a lot of energy is also generated with solar panels.
Most people do not immediately benefit from this because their energy rates are contractually fixed, but people with a so-called dynamic energy contract can temporarily receive money if, for example, they turn on the washing machine or charge their electric car.
Data from major trading platform Epex Spot showed on Saturday that electricity prices are negative for much of Sunday in nearly a dozen countries. In the Netherlands, the price would even drop to minus 73.76 euros per megawatt hour on Sunday afternoon.
It is not the first time that these prices have fallen below zero. This happens when a large amount of wind and sun suddenly makes much more energy available than is consumed. Negative electricity prices seem to be occurring more often this summer. It is also striking that it is now happening in so many countries at the same time.
According to experts, this is a side effect of the transition to renewable energy as long as it is not accompanied by a change in energy use. Smarter devices and storage systems are needed that absorb a lot of energy precisely at times when a lot of power is generated and less at other times.
“The negative prices are an important signal in the electricity system to encourage flexibility and storage,” said Tom Haddon, consultant at Cardiff consultancy and engineering firm Arcadis. “At the moment, negative pricing is a bug, but it should be a feature.”
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