Bidding error sees Finnish day-ahead power price tumble

This is a very terse note. Is there simply not more information available than "some price went negative on the market because someone made a mistake", or am I missing something that's implied here?

Re: Bidding error sees Finnish day-ahead power price tumble

#6

Post by sigurdjs » Thu, Nov 23, 2023, 11:03 PM UTC

MauranKilom wrote: post #5

This is a very terse note. Is there simply not more information available than "some price went negative on the market because someone made a mistake", or am I missing something that's implied here?

If you charge a 100kwh Tesla in Finland tomorrow you will be paid 50 euro, which is kind of extreme

Re: Bidding error sees Finnish day-ahead power price tumble

#7

Post by patall » Thu, Nov 23, 2023, 11:03 PM UTC

MauranKilom wrote: post #5

This is a very terse note. Is there simply not more information available than "some price went negative on the market because someone made a mistake", or am I missing something that's implied here?

I think it's all there. The company in questions bid provides ~5800 MW for 24h, paying 203€ to those that use that power. Other companies will have accepted that bid (automatically) and will now tomorrow expect that power to be delivered (and get money for it), while other providers are planning to do something else with their power. The company mentioned may or may not have that much power available.

Re: Bidding error sees Finnish day-ahead power price tumble

#8

Post by 7thaccount » Thu, Nov 23, 2023, 11:06 PM UTC

MauranKilom wrote: post #5

This is a very terse note. Is there simply not more information available than "some price went negative on the market because someone made a mistake", or am I missing something that's implied here?

The market price is based off the cost of the marginal MW for some of these auctions. They tried selling power, but someone accidentally said they'd sell for a very large negative euro per MW hour amount and that set the price for the entire market and obligated them to pay the market to sell power. This is pretty rare, but not unheard of.

Re: Bidding error sees Finnish day-ahead power price tumble

#9

Post by hallux » Thu, Nov 23, 2023, 11:07 PM UTC

MauranKilom wrote: post #5

This is a very terse note. Is there simply not more information available than "some price went negative on the market because someone made a mistake", or am I missing something that's implied here?

Well, electricity consumption in Finland will very likely spike tomorrow. People with a certain type of contract for their electricity will actually earn money for using a lot of electricity. Don't know what the implications for the network are, but I don't think such unnatural spikes in consumption are good for it.

Re: Bidding error sees Finnish day-ahead power price tumble

#10

Post by patall » Thu, Nov 23, 2023, 11:07 PM UTC

sigurdjs wrote: post #6

MauranKilom wrote: post #5

This is a very terse note. Is there simply not more information available than "some price went negative on the market because someone made a mistake", or am I missing something that's implied here?

If you charge a 100kwh Tesla in Finland tomorrow you will be paid 50 euro, which is kind of extreme

They placed a bit at that price doesn't mean the market price will be that high.