Introduction: This is episode 6 of our "Unlocking the Energy Trilemma" Podcast. The subject of the podcast was “The Tsunami of Negative Electricity Prices”. Our Managing Director, Mr. Ravi Krishnan, and our partner, Mr. Jose A. Martinez were moderators in this podcast featuring Mr. Emeric de Vigan, VP Power at Kpler. We concluded the podcast on June 14th 2024. Here are some questions and topics that were raised during the podcast. Click on the link above to listen to it directly.
What fact or figure related to the energy trilemma would you like to highlight for our listeners today?
Could you discuss the measures that European RTOs are promoting to enhance grid flexibility in response to negative pricing?
If the marginal cost of electricity approaches zero, similar to how internet costs have evolved from paying per kilobit to monthly fees, how do you envision the payment structure for electricity evolving?
Are you observing any trends among industrial consumers, especially those with flexible consumption patterns, where they are increasing their energy usage during periods of negative pricing to absorb excess supply and contribute to grid stabilization?
Why would electricity sellers choose to offer their product at zero price? What are the motivations behind this decision?
Can you shed light on the evolution of energy storage technology in Europe, both short duration and long duration, as a potential mechanism to enhance grid flexibility and offset persistent negative pricing?
Do you believe that the transformation of trading in the electricity sector, similar to the shift in finance towards algorithmic trading, is leading to a speculative market? With servers, connectivity, and hosting closer to negotiation points, are we witnessing larger imbalances, particularly during solar peak times? How do you perceive the future of electricity pricing, especially as it moves away from being cost-based?
In which regions of Europe do you observe negative pricing being more prevalent? Could you elaborate on how this phenomenon varies across different geographical locations within the continent?
Do you believe that negative electricity prices translate into lower electricity bills for consumers? Are these price reductions typically passed on by utilities to the end consumer?
Do you think the volatility in electricity prices in Europe is a consequence of the significant investments in renewables? Specifically, do higher shares of renewables in the energy mix lead to more hours with negative prices?
Do you track whether negative pricing leads to an increase in the average LMP or the lowest marginal price per megawatt hour? If so, could you provide insight into how significant this impact is?
How do you perceive the impact of Europe's extensive interconnections on the occurrence of negative prices across different countries this year? Specifically, how do these interconnections influence neighbouring countries when one country with abundant solar or wind power exports electricity at low or negative prices, potentially affecting their energy mix and utilization of thermal or nuclear power?
If you had a magic wand to resolve the energy trilemma, what specific action or change would you wish for to unlock it?