Instances of negative power pricing have been more than twice as high so far this year compared to 2019, according to new data.
European power market data analyst EnAppSys said excess electricity in the market had increasingly led to consumers being paid rather than charged to use electricity.
The study showed that in the nine months to September 2020, European countries on average saw negative day ahead prices almost 1% of the time (0.8% on average). These levels were typically 3-4 times higher than those seen between 2015 and 2018, and more than twice those in 2019.
With supply required to match demand, the day ahead price of power in markets increasingly fell below zero.
Alena Nispel, Business Analyst of EnAppSys, said: “In such an event, generators will stop producing power if production costs get too high, making it unprofitable in the long run – as a result, the energy supply is reduced. Consumers are being paid in order to increase the energy demand.
“If the frequency of these events increases, it may become the norm to move away from the fixed value in the future and instead use more power when the market is oversupplied and less when power is at a premium.”