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You are misunderstanding the wholesale price that the utility companies pays with the price they ultimately charge the consumer. For the consumers, the electric
by thebluehawk 9y ago
You are misunderstanding the wholesale price that the utility companies pays with the price they ultimately charge the consumer. For the consumers, the electricity was not free nor negative. They were charged their regular rate.
But yes, negative prices incentivize large scale batteries or other ways to make the supply and demand match up better.
- beefield 9y agoBut of course there are large scale industrial customers that do transact directly in the wholesale market and not through a retailer, and of course they were paid to use the electricity. Then it is up to you and your retailer if you have a fixed rate or a rate that adjusts with the market prices if you are able to utilize the cheap electricity.