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
These dynamic prices aren’t only dependent on demand, but on supply as well. Not only is demand lower during the day, but supply is high. This is a result of the fact that nuclear and coal can’t be shut off quickly and the abundance of sunlight and wind during the day.
To keep the power grid intact, it is essential to match demand and supply. More supply than demand can really damage the power grid. Energy companies can avoid this by offering energy at a cheap price (or even give money for using energy).
And yes, you could make money out of it by only using power during that time frame.
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