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ECA Viewpoint – Avoiding negative electricity prices: what measures should TSOs take?

Mar 18, 2019

Negative wholesale electricity prices are an increasingly common occurrence in European markets. Although a logical consequence of competitive market forces at play, negative prices are in breach of ENTSO-E guidelines and imply suboptimal load management. Ultimately, this leads to higher cost to consumers and system operators in the affected markets. This viewpoint explores measures that TSOs can take to pre-empt negative prices. We argue that ancillary service contracts incentivising wind curtailment and Contract for Difference (CfD) could be part of the solution. READ ECA VIEWPOINT HERE