News date: 07. 11. 2024.
Use of battery systems for storage and sale of electricity according to price fluctuations on the Croatian electricity exchange CROPEX:
TAKE ADVANTAGE OF NEGATIVE AND LOW PRICES
On electricity exchanges, including Croatia’s CROPEX, trends like periodic negative or very low energy prices are becoming increasingly common. These fluctuations present challenges for energy producers and retailers but also create unique opportunities to optimize costs and boost revenue. Battery storage solutions play a crucial role in helping companies manage these market trends, making it easier to capitalize on low-price periods and enhance profitability.
What happens when the price drops below zero?
Negative electricity prices in markets like CROPEX usually occur when there is excess production, for example due to large amounts of energy from renewable sources such as wind farms and solar panels. In periods when electricity production exceeds market demand, prices drop below zero. This means that energy producers actually have to pay for someone to take their energy.
For many energy producers and traders, this represents a loss. Not for those with energy storage technology, such as advanced battery systems, this can become a profit opportunity.
How can battery systems take advantage of this trend?
Battery systems enable energy storage when prices are low or negative. Considering that energy prices in the market can vary significantly during the day, batteries offer the possibility of storing energy when the price is the lowest. Followed by selling that energy when the price is the highest — thus making a profit.
Key advantages of battery systems in these conditions:
1. Storage in times of low prices
When energy prices are negative or very low, the battery system can store the produced energy without the need to constantly load the market. Stored energy can be sold later at a time when the price is significantly higher.
2. Optimization of sales in peak hours
By using batteries, users can take advantage of peak prices in the market, which usually occur in the afternoon or evening when energy consumption reaches its maximum. Stored energy from periods of low prices can be sold when prices reach their peak, thereby realizing a significant economic benefit.
3. Increasing income stability
Cyclical and unstable price trends in the electricity market can cause large fluctuations in income for those who directly depend on market prices. Battery systems enable the optimization of these revenues, as they enable control over when energy is produced and sold, reducing exposure to market risks
4. Increasing energy independence
In addition to economic advantages, battery systems also enable greater independence from market conditions and building energy flexibility. For example, businesses and industries can store energy during more favorable conditions and use it during periods when the market is not favorable, reducing the need to purchase expensive energy.
Implementation and future trends
Although battery systems are increasingly popular, the implementation of this technology requires significant initial investment. However, given the ever-lower prices of batteries and the possibility of a return on investment through the optimization of market prices, many companies are already starting to invest in energy storage. In addition, support at the regulatory and political level is also growing, as battery systems contribute to the stabilization of the energy grid and better integration of renewable energy sources.
Also, the technology of battery systems for energy storage is constantly advancing, increasing efficiency and reducing the cost of stored kilowatt hours. The future looks bright for anyone looking for ways to take advantage of the market and reduce their energy costs.
This is just the first in a series of short informative articles on this topic. In the future we will try to bring you something more specific on this topic. In the meantime, we invite you to contact us with specific questions or inquiries!
