SEM Focus: Day-ahead power turns negative to record low
05 June 2020
Last weekend saw the day-ahead power price average negative for only the second time since the new trading arrangements commenced back in October 2018. The first such negative pricing event occurred on 5 April, when the day-ahead power price averaged -€2.5/MWh.
Saturday 23 May saw the power price outturn lower at -€10.1/MWh on average, representing a €14.9/MWh reduction compared to the previous day.
The day-ahead market started the day at -€1.0/MWh, before falling as low as -€41.1/MWh at 05:00 – making it the lowest price for an hourly settlement period since at least 28 October 2019. In total, the day observed 18 consecutive periods of negative hourly settlement periods from 00:00 to 17:00. The remaining periods on the day rose positive, before ending the day at €0.0/MWh.
Price depression on the day would have been impacted by strong wind output. This saw wind production account for 68.4% of the generation mix on average throughout the day. Low weekend demand would have also been a factor when coupled with the days strong wind generation. Demand on the day totalled 81.0GWh, the lowest daily demand since June 2018, aided by warm temperatures.
The same day also saw intraday markets one and two average -€10.0/MWh and -€1.0/MWh respectively. These represent the lowest prices for these markets since at least March 2019. The intraday one market also averaged negative on 22 May at -€1.0/MWh.