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Day Ahead Market adventures: capacity restrictions and negative prices

45 点作者 NiekvdMaas大约 2 年前

4 条评论

londons_explore大约 2 年前
Futures trading generally interests me...<p>Specifically, both electricity and gas have robust futures trading markets. And gas can be converted to electricity.<p>So... In the ideal world, whenever the price of gas is higher than the price of electricity, gas generators should shut down - since there isn&#x27;t money to be made.<p>However, looking at market data for the UK, <i>that only happens sometimes</i>. There are plenty of generators who, according to spot market prices, shouldn&#x27;t be operating, yet are.<p>Obviously some gas generators might have purchased low priced gas futures, or have sold high priced electricity futures - making it profitable to operate. However, even gas generators in that position stand to profit <i>more</i> by shutting down and reselling the futures they have bought on the open market.<p>It appears that even big companies make suboptimal market decisions on quite a frequent basis.<p>I suspect the cause is general lack of business flexibility. If such inflexibility is widespread, it would be a good reason to disallow futures trading entirely - by forcing people to buy things as they use them, they are <i>forced</i> to notice that what they are about to do isn&#x27;t profitable - and the futures market hides that from them.
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neals大约 2 年前
Interesting read, I was wondering what happened that day. As an operator of a small network of fastchargers, we were delighted to have a purchase price of negative 20cent per kw. Which is huge.
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fboerman大约 2 年前
author of the post here, thanks for posting it here! If there are any questions feel free to ask!
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Reason077大约 2 年前
Which country names their TSO “50HERTZ”? Haha! props to them!
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