On Labour Day, EPEX Spot prices on the Belgian wholesale market plunged deep below zero once again.

Due to the public holiday, consumption among SMEs and industry was relatively low, while solar panels and wind turbines were running at full capacity. The result: a significant energy surplus.

Around midday, the price dropped to € -498.76/MWh. In the evening, gas once again became the marginal price setter, and the price rose to € 235.89/MWh.

We can conclude that the energy market increasingly revolves around timing (= when you consume or produce) and flexibility (= being able to adapt your behavior, for example via load shifting or energy storage).

Value lies in flexibility

On May 1st, it became clear once again: those who respond smartly to the system reap the most benefit.

With a smart Energy Management System (EMS), consumption can be shifted to moments when prices are negative, for example by charging electric vehicles during the midday hours (a total of 8 hours of negative prices on May 1st).

The role of battery storage

With a battery system, that opportunity becomes even greater:

•            Charging during negative prices (you get money)

•            Discharging during peak hours (you avoid expensive purchases or sell)

•            Fully automatically controlled based on market prices

What does this say about the future?

This phenomenon is no exception. Consider also the previous week (Sunday, April 26) and Easter Monday, where similar price patterns were visible. It is clear that these types of opportunities will occur more frequently in the future. With daily spreads averaging up to €150/MWh this year, this is evolving into a structural revenue model.

Conclusion

May 1st confirms a clear trend:

•            More renewable energy = more volatility

•            More volatility = more opportunities

•            More opportunity = need for smart management.

The energy market is evolving from stable to dynamic, and rewards those who adapt.