Low demand and a sunny weekend sent power prices plunging into negative figures on the day-ahead hourly market for the third time as generation hit a new record.
As negative pricing becomes increasingly common, Cornwall Insight's Tim Dixon explores what's driving the trend and how it's likely to change in the coming year.
Full CfD proposals include prospective changes to technology pots, negative pricing and energy storage
The formal consultation document on changes to the Contracts for Difference scheme includes a potential revision of technology pots, an extension of the negative pricing rule and a relaxation of energy storage metering requirements.
Negative pricing will be a ‘big feature’ in net zero transition as UK sees 15 periods in 2020 so far
Negative power pricing is becoming an increasingly common occurrence on the UK energy networks. Already in 2020, there have been 15 half hour periods where the cost of electricity fell into negative figures, according to Drax Electric Insights.
High wind over the weekend sent power prices plunging as a surge in UK wind generation triggered negative prices for a record length of time, according to National Grid.
Wind power returned last weekend following a relatively still period, sending spot prices into the negative for extended periods.
UK power prices turned negative for nine consecutive hours on Sunday in what’s been billed as an “extraordinary turn of events” for the country’s electricity system.
Instances of negative pricing in the Balancing Mechanism (BM) are here to stay and only set to become more prevalent over the next 15 years, forecasts from Cornwall Insight have suggested.
UK wholesale power prices dipped into negative pricing for more than six hours yesterday following an “unprecedented turn of events” in the country’s supply and demand profile.