Earlier quoted context omitted.
> It's not that simple. For instance, when there's too much electricity on the European grid because, say, wind energy is particularly strong that day in Germany, producers need to pay for someone else to take that electricity. It has negative cost. This is rare for now, but it does limit the rollout of renewables. If you don't have any external pressure or subsidies on you, you can turn off solar/wind in seconds. Re…
Those "slow to ramp" plants are necessary to provide the base load. The cause of the overload is the volatility of renewables. Whether it would be cheaper to curtail renewables and who exactly gets to foot the bill - I don't know. Doesn't seem reasonable to me that, say, France should pay Germany because their very stable nuclear plants can't accommodate for the volatility of renewables elsewhere. Either way, the cos…
Sure, that's true. But what I'm saying is that negative prices don't impact the rollout of renewables because renewables never have to pay them. And in a market with lots of renewables and no distortions, prices won't go below zero anyway.