Comments on negative wholesale prices across the SEM: Research from Cornwall Insight Ireland shows a continuation of the power markets in the Single Electricity Market (SEM) out turning negative. From the 5th of July, all Intraday and day-ahead markets in the SEM have displayed periods where daily market activity has averaged below €0.0/MWh.


Since April, the SEM has seen a total of 16 negative pricing events, shown in the below graph. This has predominantly occurred in the intraday one market (five times) and on the day-ahead market (four times).

Comments on negative wholesale prices across the SEM


Joe Camish, Analyst at Cornwall Insight, said:


“Such negative pricing events have only started to occur this year. The first event observed on the 5th of April when the day-ahead and intraday one market averaged -€2.5/MWh and -€4.6/MWh respectively.


“This is primarily due to a drop in power demand, because COVID-19 measures and strong periods of renewables output have created a perfect storm for negative prices. These negative pricing events also have predominantly occurred over the weekend (15 out of the 16 times), a period of lower demand compared to weekdays.


“While this may benefit flexibility providers, these low prices will be a cause for concern for generators, whose revenues could be significantly affected if this price cannibalisation effect continues.


“With increasing renewables penetration across the SEM, this will be a trend to watch out for as more intermittent renewables capacity comes online.”

Comments on negative wholesale prices across the SEM – Post kindly provided by Cornwall Insight

Previous Post
EV charge point installations cost reduced
Next Post
Green recovery gets £350m supercharge

Related Posts

No results found.


Subscribe to our newsletter!

You have successfully subscribed to the newsletter

There was an error while trying to send your request. Please try again.

British Utilities will use the information you provide on this form to be in touch with you and to provide updates and marketing.