Electricity prices in Finland flipped negative — a huge oversupply of clean, hydroelectric power meant suppliers were almost giving it away
Finland faced a unique problem on Wednesday – clean electricity so abundant that it drove energy prices to the negative.
The Nordic country reported its spot energy price dropping below zero just before noon, while much of Europe is experiencing an energy crisis.
According to Jukka Ruseunen, CEO of Finland’s grid operators Fingrid and Yle, this meant that the average daily energy price was “slightly below zero”.
In practice, it does not appear that any Finns receive a payment for consuming electricity. The electricity is marked up and people often pay agreed prices for power rather than the market price.
|
Finns are cutting back their energy consumption due to the Russian invasion of Ukraine and an unexpected surplus of renewable energy.
Ruusunen, a Ruusunen, told Yle that Finns can “feel good” about using electricity.
Finland went from being in energy poverty to being in a glut within a few short months
It is an amazing turnaround for a nation that told its citizens to reduce their energy consumption only a few short months ago.
Last winter, all people talked about was how to get more power. We are now thinking about ways to limit the production. “We have gone from extremes to extremes,” Ruusunen said in an interview with Yle.
After the invasion of Ukraine, Russia banned all energy imports to Ukraine. This led to a global energy crisis.
A new nuclear reactor came online in April of this year, providing a major new source of energy for Finland’s population. This is around 5.5 millions people.
According to The National, Olkiluoto 3 – the first new reactor in Europe to open in over 15 years – has lowered the price of electricity by 75% in Finland, dropping from 245.98 euro per megawatt hour in December to only 60.55 euro per megawatt hour in April.
The country has been pushing for the introduction of renewable energy solutions. Ruusunen said to the National that Finland hoped wind would be its main power source by 2027.
The energy price is also dropping. The excess meltwater, which has led to flood warnings across northern Europe, is driving Finland’s hydroelectric plant into overdrive. This gives Finland plenty of electricity.
This type of forced production is common during spring floods because the production cannot be slowed. Hydropower is often unable to regulate itself in the spring due to the large amount of water.
Finland now deals with too low energy prices
Finland now faces the opposite issue of a poor energy supply. Energy operators may not be able operate normally if electricity costs less than what it takes to produce.
Ruusunen stated that “production that is not profitable for these prices is removed from the market.”
Due to the fact that hydropower can’t be turned off or slowed, other energy producers such as nuclear look to reduce their production in order to avoid losing money.
Ruusunen stated that Finns can use as much energy as they want.
No Comments