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All the analysis I can find talk only about the spot price being negative. But what matters for economics is the volume exchanged at this negative price, that
by guerby 2y ago
All the analysis I can find talk only about the spot price being negative.
But what matters for economics is the volume exchanged at this negative price, that is if you are a buyer with infinite capacity to absorb kWh how much money you'll make yearly?
Anyone with a good URL?
- ragebol 2y agoNo URL, but if demand were there to take all that in, the demand would obviously go up. But there is not enough demand, so the capacity is far from infinite. The best fix for negative prices is negative prices, the demand will come. I'm still curious about the actual MWh's traded for negative prices as well
- pyrale 2y agoAfaik most of the energy is traded otc, spot markets are a tiny fraction of what gets delivered. But that fraction is still interesting: since p=c must be respected, and there is always some small delta that is hard to predict and has to be covered. The spot price is not relevant to consumer prices, but it is relevant to the cost for energy providers to fine-tune their supply.