Electricity exchange prices go into negative in small hours of Monday

Electricity sub-station. Drops in electricity prices to homes were part of the driver behind slight deflation on year to July 2020. Source: ERR

The price of electricity in Estonia went into the negative for the first time overnight Sunday to Monday, reaching -€0.09 per MWh on the NordPool market.

Wheereas Sunday evening the NordPool Estonia price was between €37 and €41 per MWh, by midnight it had fallen to €1, ERR's online news in Estonian reports, reaching zero between 2 a.m. and 3 a.m. Central European time, and went into the red between 4 a.m. and 5 a.m.

This meant that electricity generators would have to pay customers €0.09 per MWh for electricity.

Negative prices were also experienced in Sweden, Finland, Latvia and Lithuania.

However, the phenomenon was only short-lived, with the exchange price reaching around €49 per MWh between 8.00 a.m. and 9.00 a.m. this morning.

Letting prices go into the negative was still less expensive than closing down plants temporarily, it is reported.

While electricity prices fell during the coronavirus pandemic, the easing of government restrictions was accompanied by a rise again, with one surge in particular leading to temporary prices of over €250 per MWh.

Global oil prices also went into the negative earlier this year.

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Editor: Andrew Whyte

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