Articles explaining how electricity is traded, priced, balanced, and valued across wholesale power markets.
A power market may average €80/MWh over a year while a solar plant earns only €60/MWh. Nothing is missing. The problem is timing. Capture price measures the average electricity price a generator actually experiences during the hours when it produces - and explains why two power plants selling into the same market can earn very different prices for the same MWh.
Electricity has one unforgiving rule: generation and consumption must remain in balance in real time. But forecasts are never perfect, power plants trip, demand changes and wind does not read tomorrow's schedule. Electricity balancing is how the power system continuously closes the gap between what was planned and what actually happens.
Electricity is supposed to cost money. Yet wholesale power prices can fall below zero, meaning generators may effectively pay the market to take their electricity. That is not a broken market or free electricity for your house. It is a very loud price signal telling the power system: we have more electricity right now than we know what to do with.
Electricity can be worth €20/MWh at noon and €150/MWh a few hours later. Energy arbitrage turns that difference into a business model: buy or store electricity when it is cheap, then sell it when it becomes valuable. The idea sounds suspiciously like “buy low, sell high.” It is. The interesting part is what batteries, efficiency losses, degradation, forecasts, negative prices, and thousands of competing batteries do to that beautifully simple plan.
A gas-fired power plant can be technically available, connected to the grid, fully fueled—and still have no economic reason to generate electricity. The spark spread explains why. It compares the value of the electricity a gas plant can sell with the cost of the gas it must burn to produce it. Add carbon costs and you get the clean spark spread: one deceptively simple number connecting electricity, gas, plant efficiency, carbon markets, dispatch, and power prices.