In Germany, on Christmas Eve last year and early into the next day, it was reported that consumers were paid up to $60 per megawatt-hour to use energy.
These negative rates occur when too much power is generated from renewables and there’s a low demand for it.
Since fossil fuel (baseload energy) plants can’t be shut down and restarted quickly, it’s better for the exchange to pay consumers.
Germany producing excess renewable energy
It is reported that Germany has spent over $200 billion on expanding its renewable industry in the last 20 years.
Media reported that in 2017 alone, the European country generated excess power over 100 times, which is more frequent than other European countries have seen. Read more…
“We now have technology that cannot produce according to the demand, but is producing according to the weather,” Tobias Kurth, managing director of Energy Brainpool, explained.
This is one of the key challenges in the whole transition of the energy market to renewable power.
Power markets dynamic as ever
On a positive note, a European power exchange company, EPEX SPOT, recently released its 2017 performance on the UK market, which indicates positive results.
A total volume of 535TWh was traded on EPEX SPOT’s markets in 2017.
The company’s chairman of the management board, Jean-François Conil-Lacoste, said: “The energy sector in general, and power markets in particular are as dynamic as never before. At EPEX SPOT we strive to stay ahead of our time, to offer innovative products while harmonising power trading across Europe and exploring new initiatives that will determine the way we trade power in the future.
“We make markets work, and the high liquidity of our markets illustrates EPEX SPOT’s pivotal role for the European power sector in 2017.”
Featured image: Stock