Negative Wholesale Electricity Prices in the German, French and Belgian Day-Ahead, Intra-Day and Real-Time Markets

Negative prices are a correct signal representing the system's scarcity of downward flexibility, but also result from a market distortion caused by renewable support mechanisms. In the worst case, these withhold active market participation, as in Germany, with its feed-in-tariff coupled with a stringent curtailment policy. In the best case, these result in negative bids under their marginal production cost to recover lost subsidies, as in Belgium.