NEGATIVE ELECTRICITY PRICES?
6 Aug 2020
Back to the madhouse of energy. Yes, it is true. At some times of the day users are paid to take electricity.
Wholesale electricity is sold by tender from the producers in 30 minute slots throughout the day. When it is sunny and the wind blows, the market is flooded with highly subsidised renewable energy. The marginal cost is zero, so that price point is reached quickly.
But wait, the coal fired plants can’t just turn off, so they must dispose of the power, even at a negative price.
Make sense? Not really!
More next time on the mothballed solar plants...