A renewable energy record was created in Germany on Sunday 11 May 2014 between midday and 1 pm. During this hour, 74 percent of the electrical demand was provided by renewable energy sources – wind, solar, biomass and hydro power.
Some conventional base-load generators were not able to shut-down, which produced another record in the level of power exported. More than 10 gigawatts of surplus capacity was exported.
The impact on electricity prices was that prices were negative for much of the afternoon.
The ever increasing penetration of renewable energy poses significant issues for the traditional generation facility and the escalating need to develop a new operating model.
Does the negative price for electricity also highlights the possibility of opportunities which may become available for grid storage solutions?
How can a generation company survive in the long term with negative prices for electricity? There is talk that large power stations will never again be built in countries such as Germany.
What is the future model for electrical utilities?
Regardless of what happens to the structure of the ownership, there will be a need in the foreseeable future for substations, distributed generation, embedded generation and micro-grids.
BESST is able to provide power and control system design for each of these systems.