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
Generators spin at a set frequency that matches the grids electrical frequency (50hz in Europe, that’s 3000rpm).
Due to their massive weight and other echnical reasons power provider usually want their generator to ALWAYS spin at that frequency, never more, never less as this puts strain on their components.
Keep that in mind.
If the grid wants more power than the generators provide it causes the frequency to drop and generators to slow down (bad).
The energy providers compensate that by reducing the load on the grid to get back to that wanted 50hz. Usually done by restricting large power consumers.
This works the other way around aswell.
Low demand on the grid, generators spin faster (really bad). So the providers want to increase the power consumption until the generators adjuster their output.
So they actually pay companies to consume power, in other words the cost of energy becomes negative.
Fun fact:
These adjustments are done in 3 steps.
Best case is storing the excess energy in various ways.
If that’s not enough you “waste” the energy to prevent the grid from becoming unstable
At worst case you disconnect power producers, this in most cases causes heavy damage on the spinning turbines
Latest Answers