One Thing California, Texas Have in Common Is Negative Power
- Below-zero wholesale prices more common amid renewables crush
- Dynamic is testament to U.S. push to shrink fossil-fuel use
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A phenomenon in wholesale power markets that forces prices below zero when renewable energy supplies surge is occurring more than ever in markets from California to Texas. Even the Midwest and Northeast aren’t immune.
It’s expensive for nuclear plants and coal- and natural gas-fired units to turn on and off. So when output from wind and solar farms jumps and supply exceeds demand, prices have to fall below zero to force some generators offline.
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One Thing California, Texas Have in Common Is Negative Power