Italy : 100% renewable electricity and the price goes to zero

Sunday, June 16, 100% renewable electricity and the price goes to zero
Between 14 and 15, for the first time in history, the purchase price of electricity (PUN) fell to zero in on the whole national territory. This would mean that in those two hours of the day solar energy, wind and hydroelectric power generated 100% of the electricity. A long-awaited event, a symptom of a change in place.
Drafting Qualenergia.it
June 17, 2013

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Sunday, June 16, 2013, between 14 and 15, for the first time in history, the purchase price of electricity (PUN) fell to zero in on the whole national territory (see synthesis GME ). This means that in those two hours solar, wind and hydroelectric power have produced 100% of the electricity Italian (see chart below). If the event on a day completely sunny and windy enough, it could be likely in the southern regions, a bit 'surprised that it happened, even for areas north of the center, where, however, a role it might have played even good reserves in reservoirs accumulated over the past few months (we'll wait by the GME of the structure of the day and possibly of those hours in particular).

A phenomenon, that of the wholesale price of electricity to zero, which has so far occurred only for some zonal prices, but never for all areas of the country , bringing the Single National Price, ie the SNP, to zero. A similar event had been touched on Sunday, June 2, 2013, when the average minimum time it amounted to 0.46 € / MWh, but with a lower demand than on 16 June.

According to the data (ex post) needs daily schedules published by Terna at the request of 16 June 14 was 31,199 MW, 30,565 MW at 15.

A recent study by Althesys showed as the only PV in 2012 had moved to the values ??of the hourly averages of prices, so that today the price spike no longer coincides with the peak demand for electricity. The analysis considered both the lower prices in the solar hours, estimated at 1,420 million euro (of 2011 were 396 million) and higher prices in the non-solar hours, amounting to 586 million: net peak shaving in 2012 resulted in 838 million so of euro .

Further evidence of how the growing contribution of renewable electricity is keeping prices low.

"The supply capacity of renewables in Italy now seems secure in terms of demand instant coverage of 100% renewable in those moments when the demand is low as in the spring and summer Sundays," said a QualEnergia.it Alessandro Marangoni Althesys . "Anyway-clear - the instantaneous event can not be taken as a reference for careful management of the electricity market , which needs, now more than ever, a new market design in the light of a profound change in the structure of supply. " The head of energy consulting firm not unbalanced on the outcome of peak shaving for 2013, but he told us that, with the current economic situation, it is not impossible that is greater than those of € 838 million in 2012 .

For Gianni Silvestrini , scientific director of QualEnergia, "what happened Sunday, June 16 is a further demonstration of the effects of rapid penetration of renewable energy in Italy, which in May even have covered more than 50% of the production of electricity . " "In addition to affecting the net savings in terms of electricity prices and the reduction of emissions - said Silvestrini - the diffusion of renewable energy also leads to a decrease in imports of fossil fuels, reducing the high negative balance in the national energy balance " .

The Single National Price recall is the price in purchasing electricity which is formed in the Italian electricity market and is the result of auctions that cover the energy demand expected hourly with electricity offered by different operators. In the auctions we accept (it dispatches) before the cheapest deal and then, gradually, the "packets" more expensive to cover all the requirements. As you determine the hourly rate that applies to all systems is the most expensive source selected, the so-called "marginal" energy inputs at low prices, excluding the most expensive sources other extreme, are considerably lower the cost of the whole package of deals.

The non-programmable renewable , such as solar and wind, are offered at zero cost , so do not risk not being selected, knowing full well the one hand to have no fuel costs to be covered, and on the other that they shall not be remunerated zero, but at the price determined by the marginal source. Their effect is therefore to bring down the price of the groups of offers slots in which they enter. Sunday, in those two hours will remain in the history of the Italian energy system, only they were on the market: clean energy, which is why the SNP has fallen to zero.