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by flanked-evergl
69 days ago
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Prices being negative for one day does not make energy prices low. The "green shift" in Germany has increased the use of fossil fuels and the price of energy. From JP Morgan's 16th Annual Energy Paper, March 2026 https://cdn.jpmorganfunds.com/content/dam/jpm-am-aem/global/... > In 2024 we estimated that had Germany not decommissioned nuclear power after the Fukushima accident, it would have needed 50% less electricity generation from fossil fuels, 84% less generation from imported natural gas, 27% less fossil fuel capacity and 42% less natural gas capacity. Another road less traveled: Germany’s electricity prices in 2024 were almost 25% higher than they would have been had the country kept its nuclear power online . And as shown below, Germany might not have experienced such a sharp increase in its electricity imports which are 2x higher than a decade ago as a share of consumption. > More nuclear shutdown repercussions: Germany’s industrial power prices were 3x higher than the US and China in 2024, and part of the reason why Germany has been experiencing the deindustrialization shown on the right. |
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My apologies, that was poorly worded - I didn't mean to imply that all energy prices were low across the board. Of course they are not.
It's an interesting indicator, not (yet) a systemic change. And as I said in answer to the parent comment, it's a important subject right now because of the petrochemical price shock.
Nevertheless, if I were to interpret your statement as unilaterally as you interpreted mine: you said "negative prices are not low prices", which is wrong as a matter of arithmetic.