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[return to "Electricity prices in France turn negative as renewable energy floods the grid"]
1. topper+Ua[view] [source] 2024-06-18 18:50:43
>>Capsta+(OP)
Isolated this is a zero sum game in favor of buyers (someone has ti take the electricity), but longer term, this shows there needs to be better greater electricity storage solutions available, i.e batteries or similar.
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2. paulsu+wb[view] [source] 2024-06-18 18:54:08
>>topper+Ua
Negative prices make storage very practical
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3. jerf+rg[view] [source] 2024-06-18 19:23:24
>>paulsu+wb
Unfortunately you've got a massive term mismatch. You have negative prices today, but a lot of reason to believe that by the time you could bring your storage online the problem will already have resolved itself.

Oil briefly went negative a few years ago. If you decided to build a storage business dependent on negative oil prices for profit, you might just be coming online around now, and very much poorer than you were before. (Of course you would in fact have stopped a long time ago.)

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4. AaronF+6h[view] [source] 2024-06-18 19:27:44
>>jerf+rg
Oil prices went negative due to an exogenous, rare event shocking demand. No one expected that would recur. (And indeed, many people did try to figure out how to store oil in one-off vessels, short term leases for storage, etc., though I don't know if anyone succeeded.)

Solar panel production on the other hand is exponential and growing much faster than overall power consumption. It can be very, very favorable to build batteries and that's why grid scale battery production is taking off. There is in fact a storage business dependent on energy arbitrage over time, it's lucrative, and all indications suggest it will continue to be lucrative for many years to come.

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