(Bloomberg) -- Surging power output from wind and solar plants along with a nuclear reactor coming back online sent Dutch power prices to their lowest on record.
For as many as 13 hours this weekend, prices in the Netherlands and Belgium dropped below zero as output surged above demand. The plunge triggered the so-called six-hour rule where renewable subsidies are temporarily halted and producers get paid less for their electricity.
Negative prices are becoming more frequent and usually occur when there is not enough flexible plants that to halt or consumers that can ramp-up production to match a surge in generation. As much as a quarter of the nation’s power was met by wind on Saturday afternoon, according to data from the European Energy Exchange AG.
The low prices that triggered the six-hour rule “highlights the pace of the solar PV build out, the impact of offshore wind additions over the last 18 months and the lag of downside flexibility,” said Sabrina Kernbichler, lead power analyst at S&P Global Platts.
Rates fell as low as -222.36 euros per megawatt-hour at noon on Saturday in the Netherlands and as low as -100 euros at 1pm on Sunday in Belgium on the Epex Spot SE exchange.
The Borssele nuclear reactor in the Netherlands was restarted on Friday, after being offline since April 1. The plant will help provide more stable output to the region just as France is keeping more units than usual offline for maintenance and checks.
©2022 Bloomberg L.P.
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