Here in the Netherlands we have some energy companies offering dynamic tariffs. Basically it means that the price is high when the demand is high, and on contrary, the price is low when the demand is low. When the energy supply is greater than the demand the prices can become negative, I.e. -0.05 ct per Kwm
And the negative price is what amazes me. It means you earn money by using electricity. So in theory I can built a giant hamster wheel which will be powered by electricity only when the price is negative, and it will make profit. Free money for doing nothing
Does anybody knows how negative energy prices work?
In: 3
There’s a lot to it but the jist is if supply is too high, and you cannot lower you output fast enough. It cheaper to sell for a small loss. If you don’t you may be out of compliance and charged fees for non compliance. Check out CAISO or AGS to understand
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