Spot price

What is the spot price of electricity?

The spot price of electricity is the price at which electricity is traded on the exchange or other real-time markets. This price can change depending on many factors, such as the supply and demand for electricity, the condition of energy sources (for example, the availability of renewable sources or coal), the weather (which affects production from renewable sources), and geopolitical events. The spot price of electricity is an important factor for power plant operators, electricity traders, and consumers because it influences the cost of electricity and the final price paid by consumers.

What affects the price of electricity?

The differences in electricity prices throughout the day can vary significantly depending on many factors, such as the region, season, weather conditions, and current supply and demand in the electricity market. However, the following trends are usually observed:

Peak prices: During periods of high demand, such as in the evening when people return from work and start using household appliances (for example, cooking dinner, watching television, and using computers), electricity prices may be higher. These periods are sometimes called "peak prices".
Lower prices during nighttime: Conversely, during the night, when demand is lower and cheaper energy sources—such as wind or nuclear power—may be available, electricity prices can be lower.
Influence of renewable sources: In cases where the availability of renewable sources, such as solar and wind power plants, is high, there may be temporary periods when electricity prices are very low or even negative. This usually happens when the wind is strong or when it is sunny and there is an overproduction of solar energy.
Random events: Unpredictable events, such as power plant failures or gas supply interruptions, can also affect electricity prices in the short term.

Generally, during the day, electricity prices may vary by a few crowns. Therefore, it can be beneficial to monitor the electricity market and plan your consumption in line with price fluctuations to maximize savings.

So how can I save money thanks to the spot price?

When the spot price of electricity is low, you can schedule the use of appliances that consume a lot of electricity—such as washing machines, dryers, dishwashers, etc.—for those times. This can be especially useful if you have flexible appliances that you can program to start at a specific time.

What do I need to do to have a dynamic (spot) tariff?

To obtain a dynamic electricity tariff, you will need the following:

Electricity metering: A dynamic electricity tariff requires the installation of a special meter—an electricity meter that measures consumption in real time or with a short delay (every 15 minutes). If you have a photovoltaic system, you probably already have a new interval meter. If not, you can request one from your distributor.
Agreement with your energy supplier: Currently, there are many suppliers on the market who offer dynamic tariffs. Major players are expected to expand their offerings this year.
Electricity metering (again): A dynamic electricity tariff may require the installation of a special meter that tracks spot prices in real time or with a short delay. This agreement must be concluded between you and the electricity supplier.
Price monitoring system: To effectively use a dynamic tariff, you will likely need a system that allows you to track current spot electricity prices and plan your consumption accordingly. This is where my new product SPOT STATION comes in handy.
Flexibility in consumption planning: A dynamic electricity tariff allows you to take advantage of lower prices during periods of low demand. Therefore, it can be beneficial to have flexibility in your consumption planning and the ability to shift the use of appliances to times with lower prices. In this case, using switched sockets like SOLAR PLUG to control appliances is advantageous.

How much can I really save?

The spot price of electricity fluctuates during the day, and on average, prices are lower in the evening and at night. For this example, we will work with an estimated saving based on the assumed difference between the daytime and nighttime electricity prices.

Let’s assume that your boiler consumes 10 kWh of electricity per day for heating.

The average electricity price during the day is 0,30 EUR per kWh, while the average price at night is 0,15 EUR per kWh. The difference between these prices is therefore 0,15 EUR per kWh. Simple math shows that the monthly savings on operating the boiler could be 45 EUR (30 days * 10 kWh * 0,15 EUR).

And that’s just the boiler!