James Mackintosh, Wall Street Journal, has a nice piece on negative pricing in Europe’s power markets, here…
”Better-than-free electricity has been familiar in Europe on windy, sunny days thanks to subsidized wind farms and solar plants, but has been worsened by the collapse in industrial and office power demand.
Power markets are different from oil, but there are parallels in each part of the supply-demand imbalance. Extra generation can’t just be earthed without damage to network equipment, so it has to be sold whatever the price. There is little capacity to store electricity (though more is being developed). Coal and nuclear power plants are slow or expensive to shut, just as with oil wells.”
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