The year 2024 brought a evidence number of hours with negative electricity prices in Europe, which besides had consequences in Poland. According to data published by Montel Analytics, the number of hours with zero or negative energy prices on the Next Day marketplace in Europe increased to 4838 hours, which represents an almost double increase compared to 2442 hours in 2023. Poland was besides among countries with negative energy prices, although they were inactive little common than in another countries.
Negative energy prices: what does that mean?
Negative energy prices are a phenomenon where energy producers are forced to pay for the input of generated energy into the grid, which means they gotta pay for the sale of electricity. This phenomenon occurs mainly in periods of low energy request and advanced renewable energy production specified as wind and sun. In Poland, specified situations occurred mainly in the second half of 2024, especially on Sundays and Saturdays, erstwhile energy request is lower.
The most hours with negative energy prices were recorded in Finland (721 hours), and just behind it were Sweden (624-720 hours), Netherlands (457 hours) and Germany (450 hours). In Poland the number of hours with negative prices was 197 hours.
Reasons for rising negative energy prices
The phenomenon of negative energy prices is closely linked to the improvement of renewable energy sources (RES). In 2024, the capacity installed in photovoltaics in Poland exceeded 20 GWand in wind turbines reached about 10 GW. In perfect weather conditions, energy production from these sources could full cover national energy demand. However, with low demand, excess energy needs to be put on the grid, leading to a negative price situation.
Kamil Mazier, manager of Axpo Polandexplains that negative prices appear on short-term markets specified as Next Day Market is Balance sheet marketwhen RES production exceeds energy demand.
Benefits and challenges for consumers
Although the negative energy price phenomenon can theoretically benefit consumers who usage dynamic tariffsIn practice, the impact of this phenomenon on energy bills in Poland is not yet significant. Dynamic tariffs mean that the price of energy depends on exchange quotations, and in hours with negative prices for customers may pay little for energy.
However, as Zbigniew Kinal notes, president Ozeos, the number of hours with negative prices in Poland has not yet been adequate to importantly influence the accounts of most recipients. Piotr Grzejszczak from E.ON Poland notes that negative prices are only part of the picture. In the evenings, on working days under unfavourable weather conditions for RES, energy prices can be very high, which can negatively affect people utilizing dynamic tariffs.
Future of negative energy prices
While negative energy prices are presently increasing, experts note that they can vanish in the future through marketplace developments energy storage. These technologies will let to store excess energy produced during high-generation periods from RES, which in turn will enable it to be utilized later, eliminating the request for subsidies for energy sales.
The year 2024 brought a evidence number of hours with negative energy prices in Europe, including Poland. Although specified a phenomenon may benefit consumers utilizing dynamic tariffs, it inactive does not have a crucial impact on regular energy bills. As renewable energy sources and energy retention progress, negative prices can become increasingly scarce. However, future energy price volatility will proceed to be a challenge for consumers, especially those who benefit from dynamic tariffs.
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Record negative energy prices in Europe: How will this affect Poland?
