Record number of hours with negative electricity prices in May due to increased wind and solar energy in Denmark. The large number of hours with negative electricity prices in May is due to an increasing amount of wind and solar energy in the Danish energy system. May has brought a record high number of hours with negative electricity prices. According to data from Energy Data Service, analyzed by the energy group Norlys, there were 134 hours in May where electricity prices were negative. Norlys has examined electricity prices back to 2010, and no previous month has had more hours with negative prices than May 2024. This record is partly due to the increased amount of wind and solar energy in Denmark, explains Mads Brøgger, director of Norlys’ energy business. In addition, the Danish energy grid has become more integrated with the European electricity grids. Particularly, Germany and the Netherlands have expanded their solar energy capacity in recent years, benefiting Danish consumers when there are many hours of sunshine.
“The high temperatures we have experienced have also resulted in a low need for heating, and it has not been so hot that cooling was needed. This results in a situation with high energy production and low consumption, leading to many hours with negative prices,” explains Mads Brøgger. So far in 2024, there have been 214 hours with negative electricity prices, compared to 87 hours at the same time last year. The entire year of 2023 ended with 512 hours of negative prices, with October in particular, with a lot of wind energy contributing to this high number. Whether 2024 will surpass this record is still uncertain, but Mads Brøgger points out a clear trend towards more common hours with negative prices. “This development is due to the green transition. Solar and wind energy lead to greater fluctuations in when a lot of power is produced. Therefore, consumers need to adjust to these fluctuations, and many have already adapted their electricity consumption according to the prices,” says Mads Brøgger.