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Yet even now, in both the NEM and the WA''s south-west grid we regularly experience periods where wholesale electricity prices go to negative levels during daytime periods
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Record rooftop solar output slashes wholesale electricity prices A drone picture shows a residential rooftop solar unit on a house in Canberra, Friday, March 3, 2023.
Proposition 1 (i) demonstrates that rooftop solar reduces the wholesale electricity price for the power generation company. This effect is well understood: by decreasing household electricity demand, rooftop solar reduces the market share of the power plant, leading to lower wholesale prices which can stimulate market activity.
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Using half-hourly data from 2009 to 2019, we develop a novel approach to estimate rooftop solar energy generation before building regression models for wholesale electricity demand of each state.
This phenomenon is very likely to contribute to negative daytime electricity prices. For example, South Australia (SA) witnessed a record number of negative prices in
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