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- 23 April 2008
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I can't get my head around how wholesale electricity prices can go negative.The issue retailers have is that during the middle of the day they are getting more solar than they can sell at 27 cents, and the wholesale rate often goes negative.
So they are sometimes paying us our 10cents, but having to give away the power for much less, then some times later in the after noon during peak demand they have to buy power for over 27cents and sell it do us at a loss.
It’s a weird business, wear whole sale rates constantly fluctuate but retail prices are fixed.
That’s why I mentioned above that Ev’s might be their saving grace, adding a lot of load at times when in general whole sale rates are low.
Common sense says once a price is set to zero, it is free, that is as good as it gets.
If a price becomes negative, why would a electricity generator supply electricity at all?