Solar cannibals

News flows in the energy world are often entertaining, about as often frustrating and, occasionally, truly hysterical, as in hysterically funny. I’m happy to report that the “occasionally” has recently evolved into “often”.

Because of this evolution, it has become harder to pick which specific hysterical development to pick on. So I applied the Slav LOL test to make my pick for today, the test being me deciding which piece of news made me laugh the loudest. I give you today’s winner: solar cannibals.

I call it solar cannibals but more serious people call it “the renewables cannibalization effect,” occurring when wind and/or solar are generating so much electricity that wholesale prices take a plunge because there’s not enough demand to absorb the output.

It’s nothing new, this effect. It’s nothing too disturbing, either — or it wasn’t, until recently. Because now there’s a lot more solar in Europe than a few years ago and the cannibalisation effect is a lot more noticeable. In fact, it’s so noticeable, it’s driving prices below zero with all due implications of that on the profitability of those concerned. The Slav LOL reading? Off the charts. “Harbinger of power market collapse in Europe” score? Top-notch.