The Germans are prepared according to expectations to receive a very nice Christmas present: free electricity. The wind forecast is favorable, so the prices for the electricity produced by the wind that is sent to the grid will be negative. With milder temperatures demand is likely to drop, so it looks like the weather is conspiring to make the German holiday a little more festive. Temperatures are estimated to be 5 ° C higher than normal.
Electricity prices in Germany can turn negative during the holidays, in a matter of hours or on whole days, as happened on May 8 of this year. Bloomberg analysts reported that the negative electricity prices are “due to low demand for energy during the Christmas season, when factories close and people go on vacation or visit family.” In addition, the availability of wind should be high ”. Warmer temperatures mean families probably won’t need as much heat as usual.
On December 27, wind generation could reach 33.7 gigawatts, enough to power around 2 million homes. It can be difficult for operators to balance the grid with so much wind power, and if prices turn out to be negative, producers will have to shut down factories to reduce production or pay users to consume electricity. electricity.
It is not the first Christmas that German energy prices have been negative. Christmas Eve in 2012 and 2013 has already happened. This year, it is predicted that electricity prices in Germany could be at least 10.95 euros per megawatt hour in negative.