What is the story
The manufacturing of solar energy in Germany exceeded the demand of customers, which led to a major lower within the value of power, which affected the earnings of producers and slowed down the enlargement of photo voltaic power.
According to a notice from SEB Research, photo voltaic producers received an 87% discount within the value of manufacturing hours within the final 10 days. In truth, costs dropped beneath zero throughout peak manufacturing hours.
On common, the worth acquired was €9.1 per MWh, properly beneath €70.6 in non-solar hours.
Reasons behind the decline in power costs
The sharp drop in power costs is attributed to a big improve in solar energy capability in Germany final yr, which put in a document 14,280MW of solar energy capability, nearly double in comparison with the earlier yr. yr.
California is experiencing related points
The drawback of solar energy surplus and its impact on power costs just isn’t distinctive to Germany.
California additionally faces related challenges as a result of extra solar energy, which is slowing the set up of photo voltaic panels and hindering progress towards a carbon-neutral future.
In response, California lawmakers decreased funds to photo voltaic producers and allowed the state grid operator to promote its extra power to neighboring states.
Energy storage options for extra solar energy
The proposed long-term answer to the solar energy surplus problem is the set up of power storage options.
These techniques can retailer extra photo voltaic power to be used on cloudy days and nights when electrical energy demand is traditionally at its highest.
Until such options are applied, states with extra solar energy must navigate fluctuating power costs.