Germany set to pay customers for electricity usage as renewable energy generation creates huge power surplus

Output from wind turbines forecast to hit record on Sunday

Wind turbines in action
Wind turbines in action

German power producers are poised to pay customers to use electricity this weekend.

Wind generation is forecast to climb to a record on Sunday, creating more output than needed and driving electricity prices below zero, broker data compiled by Bloomberg show. It would be the first time this year that the average price for a whole day is negative, not just for specific hours.

Germany’s grid operators can struggle to keep the balance between how much energy people are using and how much is being produced when there are high amounts of wind generation. Negative prices mean that producers must either shut down power stations to reduce supply or pay consumers to take the electricity off the grid.

Wind output is forecast to peak at 39,190 megawatts at 7am on Sunday, equivalent to the output of about 40 nuclear reactors and enough to meet more than half of Germany’s total demand. Onshore wind turbines accounted for almost a third of Germany’s installed power capacity at the end of June and the nation is poised to increase new installations by 9 percent this year, according to industry federation BWE.

Wind power currently supplies about 10 percent of Europe’s electricity and is expected to continue to grow as the technology becomes cheaper. The cost of electricity from offshore wind farms, once one of the most expensive forms of green energy, is expected to slide by 71 percent over the next two decades, according to Bloomberg New Energy Finance.

Earlier this year, Germany shocked the renewable energy industry by handing out contracts to developers willing to build offshore farms without subsidy.

German wind generation reached a record 38,370 megawatts on 18 March.

Bloomberg

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Please enter a valid email
Please enter a valid email
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Please enter your first name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
Please enter your last name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
You must be over 18 years old to register
You must be over 18 years old to register
Opt-out-policy
You can opt-out at any time by signing in to your account to manage your preferences. Each email has a link to unsubscribe.

By clicking ‘Create my account’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Join our new commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in