Group 1 - The core issue of negative electricity prices is becoming more prevalent in China's electricity market, particularly in Shandong and Zhejiang provinces, due to an oversupply of electricity from renewable sources like wind and solar [2][6][7] - During the 2023 "May Day" holiday, Shandong experienced approximately 46 hours of negative electricity prices, with negative pricing occurring almost daily between 8 AM and 4 PM [3][4] - The frequency of negative electricity prices in Shandong has matched that of 2023, marking the first instance of negative prices occurring for five consecutive days [4][6] Group 2 - Negative electricity prices are primarily driven by supply exceeding demand, compounded by the inability to store electricity and the need for generators to maintain operations to avoid high startup costs [6][7] - Despite increased energy consumption during the holiday due to tourism, industrial users reduced operations, leading to a decrease in overall demand while renewable energy generation remained high [6][7] - The introduction of new policies aimed at enhancing the electricity market and increasing renewable energy capacity has contributed to the rise in negative electricity prices [7][8] Group 3 - The "136 Document" issued in February 2023 aims to promote market-oriented pricing for renewable energy, which is expected to increase market volatility and the frequency of negative electricity prices [8] - While negative prices may not directly translate to profit for consumers due to additional costs, they can lead to overall lower electricity costs [8] - The development of energy storage solutions, particularly long-duration storage, is seen as a potential strategy to mitigate market volatility and enhance predictability in electricity pricing [8]