Intense Hunt for Consumers: Frequent Price Reductions Likely in Electricity Rates by 2024 - Required Immediately: Frequent Electricity Supply by 2024
Headline: 2024 Witnesses Soaring Frequency of Cheap Electricity in Germany's Market
Germany's electricity market witnessed a remarkable shift in 2024, with the Day-Ahead Market, a platform for trading electricity for the following day, seeing a surge in negative priced hours – a situation where electricity is sold at a loss. Indeed, the total hours with negative prices amounted to an eye-popping 459, a colossal increase from the previous year's 301 and a far cry from 2022's mere 69 hours.1
Wirtschaft
"Volatility on the electricity market" explains Maria Schubotz, an Epex-Spot spokeswoman, pointing to the roller-coaster price fluctuations seen on this market.1
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Negative Prices: The Details
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These negative priced hours occur primarily due to oversupply and low demand. For instance, during holidays when strong winds blow, electricity buyers could, in certain circumstances, even be paid for taking up excess electricity at short notice.1
The value of the highest negative price reached in 2024 was an astounding -135.45 euros per megawatt hour.1
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Interestingly, these hours of cheap electricity represented approximately 5% of the entire year, highlighting a gateway for potential savings for savvy consumers.1
Strom ist in Überangebot-Phasen auf dem deutschen Markt voriges Jahr an der Börse häufiger verramscht worden. 2024 gab es 459 Stunden mit einem negativen Preis auf dem sogenannten Day-Ahead Markt. Dort wird im Großhandel der Strom für den nächsten Tag gehandelt. Im Jahr zuvor waren es 301 Stunden, 2022 nur 69, wie die europäische Strombörse Epex Spot - eine Tochter der EEX in Leipzig - auf dpa-Anfrage mitteilte. Doch gab es ebenfalls deutliche Preisausschläge nach oben. "Die Volatilität am Strommarkt ist gestiegen", erklärte Epex-Sprecherin Maria Schubotz.
Swings in Prices
Strompreis etwa fünf Prozent aus.
While negative prices received attention, it's crucial to acknowledge the sharp surges in prices as well. In 2024, there were instances where the exchange price surpassed 150 euros no less than 379 times.1
Strom
This isn't an isolated phenomenon; instances of price exceeding 500 euros were recorded 21 times, accounting for 0.2% of the overall occurrences, which demonstrates an unstable market.1
Strompreis
Commentary and Opportunities
Leipzig
"As the energy supply is being rebuilt, short-term price fluctuations are increasing," explains Schubotz, pointing to a turbulent yet changing market landscape.[1](#footnote1)
Chemnitz
Dynamic tariffs tied to the exchange electricity price now provide an option for consumers. However, the transition comes with its risks. For example, inconsistent production from wind and solar power plants could result in situations where prices soar.
Paris
To seize the potential savings, consumers should exploit their flexibility and shift energy-intensive tasks to times of low electricity prices. Intelligent home systems that allow for the monitoring and customization of electricity use could prove particularly beneficial.1
EEX
It's worth noting that Schubotz emphasizes the importance of greater flexibility in consumer behavior, as this can contribute to more price stability. Dynamic electricity tariffs further motivate people to invest in energy storage solutions to better meet fluctuating demand.1
Electricity
Overall, the German electricity market in 2024 proved a rollercoaster ride of lows and highs, with soaring frequency of negative prices. The market's instability presented both challenges and opportunities, prompting consumers to optimize energy consumption and storage to fully benefit from the cheap electricity periods.[Footnote:]1. dpa https://www.stern.de/wirtschaft/news/stromoeffektivitat-4177614.html
Electricity priceLeipzig
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- EC countries could benefit from studying Germany's electricity market, as the Day-Ahead Market has seen a significant increase in negative priced hours, indicating an oversupply of electricity.
- For individuals looking to capitalize on the cheap electricity hours, vocational training in energy management or renewable energy technology could be a valuable investment, providing the skillset needed to optimize energy consumption and storage.
- As Germany's electricity market experiences volatility, it's crucial for breadcrumb__link individuals to monitor the strommarkt and stay informed, ensuring they take advantage of the low-cost electricity periods.
