Negative market prices on power exchanges: Evidence and policy implications from Germany.

• Frequency and turnover of negative prices increase at the German power exchange. • Negative market prices do not only appear due to infeed of renewable energies. • Regulatory intervention does not protect against price risks from negative prices. While Germany is home to the largest energy exchange in Europe, negative market prices still represent an unusual and serious phenomenon. In this paper, drivers of negative energy prices in Germany are investigated. Running multiple logit regressions for detecting price indicators, a period of hourly-based data will be examined. Further, qualitative arguments and foremost energy policy need to be taken into account for explaining the phenomenon, and for the drawing of economic and political conclusions. [ABSTRACT FROM AUTHOR]