Finland’s Sunday Afternoon Electricity Price Plunges to Negative Six Cents per Kilowatt Hour: A Surprising Market Trend
On Sunday afternoon, the price of electricity on the stock exchange in Finland is at its lowest, negative six cents per kilowatt hour. This is not the first time that Finland has seen negative electricity prices. In 2020, prices bottomed out between 2am and 3am on Monday, when they fell to minus 20 cents per megawatt hour. In May 2023, Finland’s average electricity price slipped into negative territory, with the peak being between 2:00 and 3:00 p.m. on Sunday when they got 33 cents for every kWh they consumed. Sweden and Denmark have also seen negative power prices in the past.
The price of electricity becomes negative in Finland due to several factors, as mentioned in the search results:
Abundance of clean electricity: Finland has an abundance of clean electricity, which has caused energy prices to plunge into negative territory. This occurs when there is an excess supply of electricity in the market, surpassing the demand for it.
Recent launch of nuclear power plant: The recent launch of a nuclear power plant in Finland has contributed to a significant drop in power prices. This increase in power generation has led to discussions among energy producers to implement measures to reduce production and address the situation where electricity prices have entered negative territory.
Low consumption and high production: The situation is characterized by high production and low consumption of electricity. This imbalance between supply and demand makes it challenging to adjust production accordingly, leading to a surplus of electricity and subsequently negative prices.
Difficulty in regulating hydropower: Snowmelt in Finland makes it difficult to regulate hydropower, which further contributes to the oversupply of electricity. This situation poses challenges for electricity producers as the price easily falls below production costs.Overall, the combination of an abundance of clean electricity, the recent launch of a nuclear power plant, low consumption, high production, and difficulties in regulating hydropower have led to negative electricity prices in Finland.