According to Bloomberg, the increase of wind and solar farms is actually beginning to give headaches to traditional power suppliers as production is higher than demand. This forces operators to shut down coal or gas plants, eventhough these systems are not designed to be easily turned on and off at a whim.
Periods with negative prices occur when there is more supply than demand, typically during a mid-day sun burst or early morning wind gust when demand is already low. A negative price is essentially a market signal telling utilities to shut down certain power plants. It doesn’t result in anyone getting a refund on bills -- or in electric meters running backward.
Above, new report released by the United Nations Environment Programme (UNEP) citing positive progress on the transition to renewable energy but noting that the advances are uneven across sectors. Read more here.
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