The Week in Flexibility: Another week, another round of negative prices
We are seeing a huge shift in the makeup of the energy mix both at home and overseas. With demand levels low, fossil fuel use increasingly is being priced out of the stack by zero marginal cost renewables. This is having an interesting impact on prices at the Day Ahead and Within Day stages.
Weekends in general always see a reduction in load for National Grid to manage, the Easter Weekend is no different in that sense. What was unusual this weekend was the levels of wind that we saw. Wind was between 2.5 GW and 5 GW until Saturday, vs a seasonal normal of 7.5 GW. Overnight Sunday, when demand levels were low, the wind spiked to 12 GW and dropped almost as quickly as it had ramped up.
This led to prices at the Day Ahead stage turning negative, with a low of -£5.30/MWh, between 05:00 to 09:00 on Easter Sunday. Imbalance prices were negative from Settlement Period 2 to Settlement Period 20 and dipped to -£60/MWh, reflecting the price that National Grid had to pay for energy balancing actions. Suppliers that incorrectly forecast demand/generation were exposed to this price. Limejump had good visibility of these circumstances evolving and were able to reduce exposure prior to the event.
Flex in numbers:
Top System Price of the week: £58.40/MWh
Lowest System Price: -£60.00/MWh
LJ Instructions: 30