Wind, solar surge pushes German power prices below zero at weekend

[jpak]

https://www.spglobal.com/platts/en/market-insights/latest-news/electric-power/081219-wind-solar-surge-pushes-german-power-prices-below-zero-at-weekend

London — Wind and solar generation surged to over 100 GW across Europe over the weekend, driving hourly prices into negative territory in Germany, Denmark and Belgium, TSO and exchange data show.

In Germany, Saturday peakload power (08:00 am-08:00 pm) settled at minus Eur2.77/MWh on Epex Spot with hour 15 lowest at minus Eur49.62/MWh.

Winds eased Sunday with just over 1 TWh generated across NWE, but solar stepped up, peaking at 51 GW across Europe Sundaymidday.

Negative prices in Germany's day-ahead auction for Sunday were limited to hours 12 to 18 falling as low as minus Eur35.75/MWh.

<more>

[NickB79]

1. Wouldn't negative prices be a really bad thing for the power sector?

I mean, if I'm selling a good or service for a negative amount, my business model is kinda screwed in the long run.

[jpak]

2. Yeah - the fossil and nuclear power sectors

But not consumers.

[NickB79]

3. So no one owns the wind and solar sectors in Germany?

Or are they subsidized by the German government to compensate for when they're losing money?

How do you keep an industry running if you start seeing negative prices on a regular basis?

[Massacure]

4. Renewable energy receives a feed-in-tariff in Germany.

If you are a wind farm being paid 5 euro-cents per kWh as a feed-in-tarrif, you can sell your electricity at a price of -3.5 euro-cents and still bring in 1.5 euro-cents of revenue.

[NickB79]

5. Thank you for explaining this

Is the feed-in tariff part of the renewables subsidy package the German government uses?