Electricity prices in the Netherlands fell to negative levels in trading on Wednesday due to an oversupply generated by renewables.
The cost of electricity fell to minus 739.96 euros per megawatt-hour during trading on the Epex Spot SE exchange in Amsterdam on April 19, Bloomberg reported. The weighted average electricity prices remained negative for every hour from 10 am to 5 pm, writes Finmarket.
The growth in the supply of green electricity significantly exceeds demand, and it is still difficult for electricity distribution companies to adapt to these changes.
Consulting firm Enappsys estimates that the Dutch electricity grid is receiving around 16 GW of green electricity at a time when consumption is generally low. At the same time, electricity export volumes also remain low. “It was an unexpected situation and we will see it again,” Enappsys CEO Jean-Paul Harreman said.
The drop in prices to negative levels shows that Europe is far from the energy crisis that sent electricity prices to record highs last year, Bloomberg notes.
Dutch electricity distribution company Tennet BV issued a warning to suppliers on Wednesday, asking them to cut supplies to the market.