If you're describing nearly free and unlimited electricity as a problem, you may want to reconsider some things.
It's a very capitalist way of thinking about the problem, but what "negative prices" actually means in this case is that the grid is over-energised. That's a genuine engineering issue which would take considerable effort to deal with without exploding transformers or setting fire to power stations
Home owned windmills, solar panels and battery storage solves that.
Edit: Look at this awesome diagram of how it's done for a hybrid setup that's about $400 on Amazon.
Home owned windmills are almost a total waste. Its surprising how little electricity they generate especially given how much the cost to buy and install. Some real numbers. A 400w can cost almost $18k to buy and install. A 410w solar solar panel is about $250 + $3k of supporting electronics and parts. And that same $3k can support 10+ more panels. I looked into it myself really wanted it to be worth it for home, but it just isn't. Now utility grade wind? Absolutely worth it. You need absolutely giant windmills with massive towers, but once you have those, you can make a LOT of electricity very cost effectively.
Solar panels worth it? Yes. Absolutely.
Batteries, not quite there yet for most folks. Batteries are really expensive, and don't hold very much electricity $10k-$15k can get you a few hours of light or moderate home use capacity. For folks with really expensive electricity rates or very unreliable power this can be worth it financially, but for most every else. Cheaper chemistry batteries are finally starting to be produced (Sodium Ion), but we're right at the beginning of these and there not really any consumer products for home made from these yet.
The grid is always over energized. That’s not a problem. Large solar and wind farms connect to the grid with great specificity about the maximum amount of energy they will put on the lines. The problem would be not enough energy. Batteries are beginning to solve the dispatch energy issue with renewables. As long as republicans don’t get their way and ruin renewable energy with unfair fossil fuel mandates, the grid will continue to modernize in this way and we’ll be fairly independent of fossil fuels in the future for electricity.
Nothing an open/close gate couldn’t fix. The real problem is how overly complicated we feel we need to make things.
In fairness, capitalist expansion is predicated on generating and reinvesting profit. If you build an array of solar panels and generate a revenue less than the installation+maintenance cost of the panels, you don't have any more money to buy new panels and expand the grid.
That is, under a privatized system, anyway. If you're a public utility and your goal is to meet a demand quota rather than raise revenue for the next round of expansion, profit isn't your concern. You're looking for the lowest possible installation/maintenance/replacement cost over the lifetime of the system, not the high margins per unit installed.
Incidentally, this is why vertically integrated private firms that consider electricity an expense rather than a profit center have been aggressively rolling out their own privately managed solar/wind arrays. When the concern is minimizing cost rather than maximizing revenue, and you can adjust your rate of consumption to match the peak productive capacity of your grid, then solar/wind is incredibly efficient.
I see this posted a lot as if this is an issue with capitalism. No, this is what happens when you have to deal with maintaining the power grid using capitalism as a tool.
Power generation needs to match consumption. Always constantly the power grid must be balanced. If you consume more than you can generate, you get a blackout. If you generate more than you use, something catches fire.
Renewables generate power on their own schedule. This is a problem that can be solved with storage. But storage is expensive and takes time to construct.
Negative prices are done to try and balance the load. Its not a problem, its an opportunity. If you want to do something that needs a lot of power, you can make money by consuming energy when more consumption is needed. And if you buy a utility scale battery, you can make money when both charging and discharging it if you schedule it right.
That's not renewables being a problem, that's just what happens when the engineering realities of the power grid come into contact with the economic system that is prevalent for now.
Also, fwiw, you can curtail wind turbines incredibly quickly. They're the quickest moving assets on an electrical grid typically. So you are using them to balance the grid quite often. You can just pitch the blades a bit and they slow or stop. it's not really a tech problem, but a financial one like you said.
I'm not sure much about solar curtailment, other than the fact that they receive curtailment requests and comply quite quickly as well.
I see this posted a lot as if this is an issue with capitalism. No, this is what happens when you have to deal with maintaining the power grid using capitalism as a tool.
The framing of it as the problem being that the price is going down rather than that excess power is feeding into the grid is what makes it an issue with capitalism. The thing you should be questioning is why MIT Technology Review is talking about some consequence of the problem that only exists because of capitalism instead of talking about the problem itself.
And before you downvote/object with some knee-jerk reaction that I'm being pedantic, consider this alternative way of framing it:
The opportunity is that solar panels create lots of electricity in the middle of sunny days, frequently more than what's currently required, so it is necessary to develop new flexible sources of demand so that the excess energy doesn't damage the power grid.
That's pretty vastly different, isn't it?
Nice comment! Thanks.
Ughh, no, negative prices aren't some weird "capitalism" thing. When the grid gets over loaded with too much power it can hurt it. So negative prices means that there is too much power in the system that needs to go somewhere.
There are things you can do like batteries and pump water up a hill then let it be hydroelectric power at night.
But it doesn't say "it can generate too much energy and damage infrastructure", they said "it can drive the price down". The words they chose aren't, like, an accident waiting for someone to explain post-hoc. Like, absolutely we need storage for exactly the reason you say, but they are directly saying the issue is driving the price down, which is only an issue if your not able to imagine a way to create this infrastructure without profit motive.
Economists think in terms of supply and demand. Saying it drives prices down or negative is a perfectly good explanation of a flaw in the system, especially if you're someone on the operating side.
Capitalism makes abundance problematic.
Supply side Jesus says put your faith in the wisdom of the CEO.
The answer is batteries. And dismantling capitalism, but batteries first
You can read the Technology Review article here discussing why this is problematic beyond a JPEG-artifacted screenshot of a snappy quip from a furry porn Twitter account that may or may not have read the article beyond the caption. We need solar power plants to reach net zero emissions, but even despite their decreasing costs and subsidies offered for them, developers are increasingly declining to build them because solar is so oversaturated at peak hours that it becomes worthless or less than worthless. The amount of energy pumped into the grid and the amount being used need to match to keep the grid at a stable ~60 Hz (or equivalent where you live, e.g. 50 Hz for the PAL region), so at some point you need to literally pay people money to take the electricity you're producing to keep the grid stable or to somehow dump the energy before it makes its way onto the grid.
One of the major ways this problem is being offset is via storage so that the electricity can be distributed at a profit during off-peak production hours. Even if the government were to nationalize energy production and build their own solar farms (god, please), they would still run up against this same problem where it becomes unviable to keep building farms without the storage to accommodate them. At that point it becomes a problem not of profit but of "how much fossil fuel generation can we reduce per unit of currency spent?" and "are these farms redundant to each other?".
This is framed through a capitalist lens, but in reality, it's a pressing issue for solar production even if capitalism is removed from the picture entirely. At some point, solar production has to be in large part decoupled from solar distribution, or solar distribution becomes far too saturated in the middle of the day making putting resources toward its production nearly unviable.
In other words… Maybe 29 word Twitter captions aren’t a great way to discuss issues?
Nah, I see nothing wrong with an information diet composed of random people with no background sharing their pet conspiracy with 5 million people on TikTok that they learned from three minutes with ChatGPT, furry porn accounts clapping back on Twitter to an out-of-context 29-word quote from an MIT Technology Review article (reshared so many dozens of times that the quality has noticeably degraded), or a picture generated in a Russian disinformation farm showing a muscular Donald Trump rescuing crying orphans from drowning in Hurricane Helene while corrupt FEMA agents loot their houses.
God fucking help us.
It's funny how capitalist apologists in this thread attack the format of a tweet and people not reading the actual article, when they clearly haven't read the original article.
Negative prices are only mentioned in passing, as a very rare phenomenon, while most of it is dedicated to value deflation of energy (mentioned 4 times), aka private sector investors not earning enough profits to justify expanding the grid. Basically a cautionary tale of leaving such a critical component of society up to a privatized market.
oh no the power is too cheap. God forbid our trillions of tax dollars go to something actually useful and good for the people oh well looks like we will get the F-47 instead and pay it to private military contracts 😂
Why not do something with all that power? In the past there were some projects where they pumped water upstream when there was too much power on the grid. Then on low energy times, the water was released making energy again. Or make hydrogen (I think it was hydrogen). Or do AI stuff
I also seen energie waste machines that basically use a lot of power to do nothing. Only the get rid of all that extra energy so the power grid won't go down/burn.
Wasn't there a town in China that produced such a glut of surplus electricity that they didn't know what to do with it? And it was 100% solar?
I get the sentiment but... When sun isn't shining the negative prices cause problem for baseline power producers who need to turn off their power plants to avoid the zero to negative power prices.
This causes the power prices to become volatile, since the investments for the power plants that run during the night need to be covered during the night only.
Eventually though the higher price volatility will encourage investments into either demand side adjustability or energy storage systems. This will play out in energy only markets.
The other alternative is to implement a capacity market, which will divide the cost of the baseline production across different production hours by paying producers more for guaranteed production capacity.
"Well you see there is generations and generations of ghouls that have made their entire livelihood off the established and continued monopolization of vital resources such as water and power and for some reason the rest of us haven't gotten together and solved that clear and obvious threat to everyone and everything collectively, I know I don't get it either."
They've got economist-brain and view everything as a money thing, which is fucked up and a problem.
But negative net demand (the thing "negative cost" is signaling) is a pain in the ass, because you either need to shut off the panels from the grid, find some very high-capacity and high-throughput storage, or blow out your power grid.
Like some hydroelectric dams in Germany get run backwards, pumping water back up behind the wall. I think there are pilot projects to pump air into old mines to build up a pressure buffer. Grid-scale batteries just aren't there yet.
Solar is good for things where the power demand is cumulative and relatively insensitive to variation over time (like, say, salt pond evaporation, but you don't actually need panels for that). It's also good for insolation-sensitive demand (like air conditioning).
Turns out distributed rooftop solar makes more sense given our current grid than big solar farms out in the desert (California built one, it was not a good use of money).
It's not great, but we need to bite the bullet and use fission+reprocessing in a big way for the near future.
Capitalism has always been the problem, nothing new here.
We have such a stupid fucking system for running society. We go out of our fucking way to block better options simply because they don't maximize profit. Not even "are actually unprofitable," just that they don't maximize profit.
This feels like it is begging for further context.
I would post that passage from Grapes of Wrath about oranges. But copy-paste doesn't work on my phone
I got you.
The works of the roots of the vines, of the trees, must be destroyed to keep up the price, and this is the saddest, bitterest thing of all. Carloads of oranges dumped on the ground. The people came for miles to take the fruit, but this could not be. How would they buy oranges at twenty cents a dozen if they could drive out and pick them up? And men with hoses squirt kerosene on the oranges, and they are angry at the crime, angry at the people who have come to take the fruit. A million people hungry, needing the fruit- and kerosene sprayed over the golden mountains. And the smell of rot fills the country. Burn coffee for fuel in the ships. Burn corn to keep warm, it makes a hot fire. Dump potatoes in the rivers and place guards along the banks to keep the hungry people from fishing them out. Slaughter the pigs and bury them, and let the putrescence drip down into the earth.
There is a crime here that goes beyond denunciation. There is a sorrow here that weeping cannot symbolize. There is a failure here that topples all our success. The fertile earth, the straight tree rows, the sturdy trunks, and the ripe fruit. And children dying of pellagra must die because a profit cannot be taken from an orange. And coroners must fill in the certificate- died of malnutrition- because the food must rot, must be forced to rot. The people come with nets to fish for potatoes in the river, and the guards hold them back; they come in rattling cars to get the dumped oranges, but the kerosene is sprayed. And they stand still and watch the potatoes float by, listen to the screaming pigs being killed in a ditch and covered with quick-lime, watch the mountains of oranges slop down to a putrefying ooze; and in the eyes of the people there is the failure; and in the eyes of the hungry there is a growing wrath. In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage.
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