German power prices dropped below zero on the first trading day of the year, an increasingly frequent phenomenon in Europe as renewables expand.

German power prices dropped below zero on the first trading day of the year, an increasingly frequent phenomenon in Europe as renewables expand.

Intraday prices in Germany, the region’s biggest market, turned negative during four hours overnight as wind-energy output reached as much as 40 gigawatts, far outstripping demand."

  • barsoap@lemm.eeEnglish
    0·
    5 days ago

    They introduced some kind of caps (don’t remember the details) on negative pricing quite early on, from what I understand it would have been very lucrative in the last decade or two to get into grid-scale battery storage without those caps.

    One thing I remember is Flensburg building, pretty much on a whim, a water storage tank with immersion heater, an investment that amortised within a month or two as they were literally getting paid to fuel their district heating.

    There’s got to be some rules as to what you can do with electricity you by at negative prices, e.g. not just put an immersion heater in the ocean, maybe some prioritisation as to who gets the energy first just as there is on the production side (fossils have to shut down and pay if they don’t do that fast enough while renewables get to produce energy), but overall I don’t see why there should be a limit on negative prices.

    • leisesprecher@feddit.orgEnglish
      0·
      5 days ago

      The thermos approach is unfortunately almost the best we currently have, because every storage solution would have to pay taxes twice, once for buying, once for selling. Not VAT, but Stromsteuer.

      Also, these dips don’t occur that often, are usually not very long and it’s kind of a reverse game of chicken. The more storage we have, the less profitable each one gets. All that makes it rather unattractive to install grid scale plants.