Earn money through electricity consumption - soon permanently negative electricity prices?

Earn money through electricity consumption - soon permanently negative electricity prices?

Will the upcoming additions of solar and wind capacity in 2030 deliver more than 3,000 hours of negative electricity prices? So should one build up stupid consumption (something like ambient heating, for example) in order to earn massive money with it? Hardly, because today's market regulations will change completely or collapse before then.

There is a widespread idea that we cannot see any other future than the massive cannibalisation of renewable producers. At noon with solar energy and, depending on the weather, with wind. If electricity were a perishable commodity as before, it would look like this. But electricity can be stored more and more cheaply - repeat: electricity can be stored and the quantities from the peak are used. Provided we are serious about 100% renewable energies in the medium term.

A completely new world of electricity is emerging

It is clearly difficult to depict the new world - after 140 years of continuous balancing of generation and consumption in the power grid with extremely few storage facilities. But this new world comes with power, and massive generation peaks alternate with a "dark lull" in extreme cases. That's right, there's a catch. And from now on, consider how the necessary quantities of electricity can come out of the peak and into the lull. Goes in steps only with saving - and of it massively in different roles.

What can the new market regulations look like? A completely state-controlled market, as demanded by various players, almost always remaining in the old system and negating further massive cost reductions for renewables and storage? Or not want it to be true. Or do Redispatch markets quickly provide incentives for more storage? Will we be able to design real innovation tenders and thus approach a new market regulation? How can we in Germany learn more from the fireworks of innovative tenders and market regulations all over the world?

A look at the global tenders for solar and storage systems on a larger scale is worthwhile: costs have been falling for some time now. A recent tender in California caused a sensation: Only 1.3 dollar cents will be needed to store solar power there: Article on pv-magazine

It should be noted that although these prices contain about 30% subsidy, they are also damn cheap with 30% higher costs. Also feasible in Germany? Yes, if the size is right and a constant production profile, e.g. by a solar and wind hybrid can be produced all year round.

And so at the end of 2019 we can clearly say: We don't have to wait for any miracle technologies or general breakthroughs. We must also not demonize any technology - in fact, we can already integrate memories intelligently in faster steps today and thus take the supposed horror out of every dark lull. It will come anyway and is already technically manageable today - the costs for coping with it will even drop dramatically.

Things are also happening that the energy industry still reckons with far too little. And so storage systems will come into the system with power that have already been paid for another purpose - for mobility, for example.

Storage - already paid anyway

New market partners such as the automotive industry are rapidly entering a market that they will need as partners in the future and can also become players themselves at the same time. They will supply millions of storage units in the coming years and interfere with the previously rigid system of the energy industry at a completely different pace of innovation. According to calculations by Mobility House, 30-40 TWh of flexibility or storage could be on the market as early as 2030. These will then all be paid for by car. An exciting idea of what you can and will do with it.

The economy wants more renewables quickly

Also from the enterprises among other things in the Re100 alliance "RE100" and other industries much new at impulses and substantial demand for genuine green current will come. We need to significantly improve public and political confidence in this in order to achieve the necessary adjustments to the framework conditions. Because as Angela Merkel said in September in Parliament, many companies have long been much more mentally advanced than many parliamentarians. They see the opportunities in the enormous task of energy system transformation and climate protection. And thus bring new demands and new products to the over-regulated electricity markets.

Do we see each other?

What Mobility House's calculations are all about, which new technologies and framework conditions will come - we will discuss this on 21/22 November 2019 as part of our New Energy World Forum with 700 participants. "Forum 2019"

Translated with GERMAN AI www.DeepL.com/Translator

Karl-Heinz Remmers
31. Oct 2019