According to Nordpool, the electricity exchange, electricity from the exchange would cost -50 cents per kilowatt hour from 3 pm to midnight on Friday.
Multi those following the development of electricity prices may have rubbed their eyes when Friday’s hourly electricity prices appeared on the electricity exchange Nordpool to the pages.
According to Nordpool, the price of electricity on the exchange would be negative every hour from 3 pm on Friday. The price for each hour would be exactly the same: -50 cents per kilowatt hour.
The same prices can also be seen in the following graph of HS’s electricity price development. The graphic automatically extracts price information from Nordpool’s website. Many other applications that follow exchange electricity prices also use Nordpool’s price data.
Nordpool according to Norwegian company Kinect Energy sent an incorrect electricity supply offer to the Finnish price range due to an internal system error.
The company offered an average of 5,787 megawatts of electricity for sale in the Finnish price range for the entire day of Friday. The amount offered is large, as it corresponds to half of the electricity consumption in Finland predicted for Friday.
According to the grid company Fingrid, the incorrect offer will affect the price of electricity calculated for the Finnish price range and the electricity transmission between the countries on Friday. Fingrid tells HS that Nordpool is not organizing a new auction and therefore the prices announced earlier on Thursday for Friday will remain in effect.
“Due to an error, the new calculation of stock prices is apparently not currently being carried out at the stock exchange. It looks like the prices will remain in effect. That was the stock exchange’s position,” says Fingrid’s head of unit Jonne Jäppinen.
Therefore, electricity on the exchange, including VAT, costs -50 cents per kilowatt hour after 3 p.m. The average price for the whole day is falling to -25 cents per kilowatt hour. It is by far the cheapest average price during the entire existence of the electricity exchange.
Nordpool previously said that it is currently investigating the issue with Kinect and other market participants to resolve the “extreme situation”.
The next day’s prices for exchange electricity are determined in an auction held at noon.
Market participants can also balance their electricity purchases in the intraday trading between countries organized later in the day. However, the trading volume in this trading is usually low.
Energy industry managing director Jukka Leskelä describes the situation as special in the messaging service X, i.e. the former Twitter.
“Now the situation in the electricity market is a bit more special. Due to a system error, one company sent a completely wrong offer for electricity in Finland for the whole day. Nordpool will find out what to do about it. So it’s not worth cheering about prices of -50 cents/kWh yet,” Leskelä writes.
Kinect Energy operates in three dozen countries and belongs to the US-based World Kinect Corporation.
World Kinect was ranked 70th last year on the list of the largest US companies compiled by the financial magazine Fortune.
The company is listed on the New York Stock Exchange, and its stock is part of the broad S&P 500 index.
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