The price of power for delivery on Christmas Day in Germany turned negative as a surge in wind generation is forecast to boost supply.
Prices may be below zero for hours or even whole days during the holiday season as German wind output is predicted to climb to near-record levels and temperatures are set to increase more than 5 degrees Celsius (9 Fahrenheit) above normal.
The negative prices are “driven by low power demand during the holiday season when factories are shut, and people go on vacation or visit their families,” Elchin Mammadov, an analyst at Bloomberg Intelligence said. “There are far fewer outages this year than the same time last year and wind availability is expected to be high.”
Germany’s grid operators can struggle to keep the network balanced when there are high amounts of wind generation that need to be moved from the north to demand centers in the south. Negative prices mean that producers must either shut down power stations to reduce supply or pay consumers to take the electricity off the grid.
No comments:
Post a Comment