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Does that also mean that the producers of the excess energy are charged for supplying power due to the negative price?
by kristianp 9y ago
Does that also mean that the producers of the excess energy are charged for supplying power due to the negative price?
- remus 9y agoTheoretically yes, though I guess the details are a little more complicated (depending on who exactly bought the energy and under what terms). e.g. energy company x might have bought all the capacity from wind farm y for the next 10 years, so then the fact that it's producing excess energy at that point in time becomes x's problem rather than y's. Presumably x would factor stuff like this in to their purchasing decision, so as long as the average price remains above some level they will still make a profit.