Negative UK spot power also dampens Dutch, Belgian prices

(Montel) UK baseload spot power prices settled in negative territory on Sunday amid low demand and high renewables output, also seeing Dutch and Belgian spot prices below zero amid market coupling, market participants said on Monday.

Baseload prices in the UK out-turned as low as GBP -15.06/MWh for some morning hours.

Belgian and Dutch baseload plunged to an hourly low of EUR -3.04/MWh from 16:00-17:00 CET.

In the UK, wind generation capacity averaged 11.6 GW but peaked at 13 GW in the evening, data from electricity producer Drax showed.

Wind and solar combined accounted to almost 54% of the UK power mix.

“Very bearish”

“[The] UK was very bearish and this resulted in some negative hours in the Netherlands and Belgium,” said one trader in the Benelux region.

“Any day with high wind and solar results in serious grid issues, especially a Sunday. And now Ireland was bearish on top of it,” he added, citing wind output hitting 4.2 GW there.

The Irish day-ahead contract for Sunday settled at EUR -3.46/MWh and saw negative prices across 10 consecutive hours.

In Belgium, wind power reached 2.1 GW on average on Sunday – peaking at 2.6 GW from 18:00 CET – while solar peaked at 2.3 GW.

And in the Netherlands, the Dutch grid was placed on alert on Saturday, said data firm Enappsys in a tweet.

“Limited flex and clustered renewables [are] likely to be the causes. Prices flipping between extremes.”

Day-ahead prices in the UK and Ireland continued to hit negative territory for Monday, out-turning as low as GBP -17.65 and EUR -20/MWh, respectively.