Increasing amounts of wind and solar energy in the Danish energy system have resulted in a record number of hours with negative electricity prices during the first eight months of the year. Electricity consumers have thus experienced several periods where it has been cheaper to use power than ever before. In fact, 2024 is on track to break the previous record for the most hours with negative electricity prices set in 2023, according to the energy company Norlys.
One of the main reasons behind this phenomenon is Denmark’s improved connection to the European electricity grid. Mads Brøgger, the director of Norlys’ energy business, highlights this improvement along with the increased production of renewable energy as crucial factors. So far this year, there have been 516 hours with negative electricity prices, surpassing last year’s record of 512 hours.
However, it is important to note that negative electricity prices do not necessarily mean that electricity is free. Consumers still have to pay various additional costs such as government electricity taxes, electricity tariffs to the transmission system operator Energinet, subscription fees, spot market premiums, value-added tax (VAT), and grid fees to their local utility company. These costs contribute to maintaining the infrastructure and management of the energy supply. It appears that the trend of negative electricity prices will continue as Denmark produces more renewable energy.