On May 11, the day-ahead price peaked at minus €250.32 per megawatt-hour.
Tibber, an electricity provider, recorded its lowest net end-user price between 1 pm and 2 pm in the Cologne region, reaching minus 8.6 cents per kilowatt-hour. Due to varying grid fees across Germany, net prices ranged from 4.9 to 11.6 cents per kilowatt-hour, with areas having lower fees seeing prices as low as minus 12 cents per kilowatt-hour. These negative prices allowed customers to earn money by consuming electricity, such as when charging electric vehicles or powering home energy storage systems, demonstrating the financial benefits of dynamic tariffs during periods of surplus energy.
The price drop was driven by a combination of high renewable energy production and reduced demand, typical of weekends. Photovoltaic systems and wind turbines operated at peak capacity, creating an oversupply of electricity. This situation, often described as a “light breeze” in the energy sector, led to extremely low prices on the electricity exchange. According to Energy Charts, exchange prices turned negative from 9 am and remained so until 5 pm, hitting a low of minus €250.32 per megawatt-hour (minus 25.03 cents per kilowatt-hour) between 1 pm and 2 pm. Even in the surrounding hours, prices stayed low enough for dynamic tariff customers to benefit financially from their electricity usage.
Despite these advantages, the day also revealed the market’s volatility. By evening, Tibber’s dynamic tariff prices surged to 36 cents per kilowatt-hour between 8 pm and 9 pm, marking the day’s highest level. This rapid shift underscores the difficulty of balancing supply and demand in a system increasingly reliant on variable renewable sources, where prices can fluctuate dramatically within hours.
Merlin Lauenburg, managing director of Tibber Deutschland, commented on the negative prices between 12 pm and 3 pm: “It looks like this summer will once again break all records for negative electricity prices.” He emphasized the need for accelerated smart meter deployment to enable more consumers to capitalize on such market conditions, ensuring broader access to the financial benefits of renewable energy integration.
In 2024, negative price hours on the electricity exchange totaled 457, a 50% increase from 2023. This trend is expected to persist in 2025 due to ongoing challenges in achieving sufficient market flexibility to accommodate fluctuations in renewable energy production. The rising frequency of negative prices signals the need for enhanced grid infrastructure and demand-side management to stabilize the market.
The events of May 11, 2025, highlight the evolving nature of Germany’s energy landscape. As renewable energy capacity grows, negative pricing may become more frequent, offering incentives for flexible consumption. However, addressing price volatility and ensuring equitable access to these benefits will require continued investment in smart technologies and market reforms to support a sustainable and resilient energy future.
