Renewables projects throughout Europe faced compressed power prices as demand dropped this year. Image: Solarcentury.
Instances of negative power pricing more than doubled in Europe in the first nine months of this year, prompting concerns for generators across the continent.
Analysis conducted by power market data firm EnAppSys revealed that day ahead power prices fell into the negative almost 1% of the time, driven by a collapse in power demand and the continued proliferation of zero marginal cost sources of power, such as renewables.
Markets with high levels of wind power – EnAppSys noted Ireland, Germany and Denmark as examples – were particularly hard hit by the shifting market dynamics. Ireland recorded negative power prices 4.2% of the time in the first nine months of the year, well above European norms, while Germany experienced day ahead power prices of -€83.94/MWh for eight hours on 21 April.
Alena Nispel, business analyst