Renewable energy is once again holding the market in its grip this week. The EPEX recorded a record low this week. For the first time in history, a negative daily price was recorded. In addition, the Netherlands Authority for Consumers and Markets (ACM) is giving network operators new powers to limit the waiting list for heavier connections.
After a brief peak, the electricity price fell to a new record low. On Tuesday, June 27, the daily price on the EPEX was €101,98. The next day (Wednesday, June 28), the electricity price rose to the highest point of the week, at €115,51. After that, the electricity price fell enormously. On Sunday, July 2, the EPEX recorded a reading of -€89,02.
Negative prices are no longer a rarity on today's electricity market, but a negative daily price has never occurred before. On that day, an exceptional overproduction of solar and wind energy took place, causing the electricity price to remain negative for no less than fifteen consecutive hours for the first time. By the way, that is not the only record that was broken that day. For the first time, the EPEX recorded a negative reading between six and seven in the evening and at the height of the day, energy suppliers charged €500 per megawatt hour for as much as three hours to get rid of their electricity.
Network scarcity is being addressed
In addition, ACM announced several reforms to the power grid. For example, companies that do not use excess capacity on the power grid for a long time run the risk of losing their capacity from this week. Network operators are given the right to purchase unused capacity. In addition, it becomes easier for grid operators to offer flexible contracts. For example, grid operators may agree that a company may not purchase electricity during rush hour. In this way, long waiting lists should be limited. The reform states that these rights will only be applied in regions where there is insufficient capacity on the power grid. Still, it is expected that the new policy will be rolled out almost everywhere. This so-called grid scarcity already exists in practice throughout the Netherlands.
Due to insufficient capacity on the power grid, companies often have to wait a long time before they can claim a heavier connection to the power grid. Currently, approximately 5.600 companies are waiting for a connection that can carry a greater power capacity. It is currently not unusual for companies to have to wait five years for a more robust connection. It is expected that the waiting lists will only increase, because without electrification of business processes, greening Dutch industry is virtually impossible.