<article><p class="lead">There has been a sharp rise in negative price settlements in Germany's day-ahead market this year, driven by a higher share of intermittent renewable generation in the energy mix and lower power demand.</p><p>German day-ahead prices for delivery from 1 January to 2 June settled below €0/MWh in 208 hours, Epex Spot data show. This puts the number of negative hours well on track to exceed the 211 reached in the whole of 2019, which was also the highest number since 2005, when Epex Spot started operating the then German-Austrian day-ahead market. </p><p>There were 20 hourly day-ahead settlements at below minus €50/MWh on 1 January-2 June this year, compared with 21 in the whole 2019. The lowest day-ahead hourly settlement this year was for delivery on 21 April on hour 14 at minus €83.94/MWh. </p><p>The number of negative prices was highest in February, with 84 hours below €0/MWh because of high wind power output. The share of renewables in Germany's generation mix was at 60.7pc, with wind power accounting for 45.1pc of the mix.</p><p>March was second-highest with 41 negative hours. The share of renewables then was 56.2pc, with wind covering 33pc of the mix and solar 10.4pc. </p><p>The number of negative peak-load day-ahead prices has risen to 131 this year, compared with 95 in 2019. As well as higher solar power generation, lower power demand in peak-load hours given restrictions on public activity implemented from mid-March to fight Covid-19 offered support, as some industries reduced their production and closed some sites.</p><p>Renewables output has accounted for 56.3pc of the generation mix so far this year, compared with 46pc in the whole of last year. </p><p>Power demand has fallen by 5.4pc this year to 54.59GW.</p><p class="bylines">By Jacqueline Echevarria</p></article>
