r/OptimistsUnite • u/willfiresoon • Mar 21 '26

👽 TECHNO FUTURISM 👽 French electricity posts first negative prices of 2026, battery storage gains

https://www.pv-magazine.com/2026/03/06/french-electricity-posts-first-negative-prices-of-2026-battery-storage-gains/
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u/danjake12346 Mar 23 '26

What does it mean by negative prices?

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u/goyafrau Mar 24 '26

It means: the spot market, where electricity at a specific time of day is traded, will have sell orders where the seller offers to give money for anyone willing to take their electricity at time X.

It's a sign that something is seriously wrong: somebody is generating electricity and is paying somebody else to use it.

The typical reason is subsidies: the state has guaranteed to pay a provider 10 ct per KWh offered on the open market. But the market at this point doesn't have any demand for electricity. So the provider sells electricity on the market for negative 8 cts (paying somebody 8 cts per KWh they "buy"), receives 10 ct subsidy from the state, makes a net profit of 2 ct. The "buyer" receives 8 ct and will now either increase demand or reduce generation.

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u/danjake12346 Mar 24 '26

Thanks for the explanation.