A surge in renewable energy generation, combined with unpredictable weather patterns, is causing a dramatic increase in negative electricity prices across Europe. Several nations, including Sweden, the Netherlands, Germany, and Spain, have now experienced over 500 hours of negative pricing this year alone. This phenomenon, where electricity producers must pay to offload surplus power onto the grid, highlights the growing strain on the continent’s energy infrastructure as it transitions to greener sources. The trend is widespread, affecting both Western and Eastern European markets.
Analysis shows that by the end of October, a price zone in Sweden had been most affected, recording 593 hours of negative electricity prices. The Netherlands followed closely with 584 hours, while Germany and Spain registered 576 and 569 hours, respectively. Other nations such as Belgium and France also surpassed the 500-hour mark. The trend is gaining momentum further east, with Finland and Denmark exceeding 400 hours, while countries including the Czech Republic, Poland, and Hungary are approaching 300 hours. Italy remains a notable exception, as its market regulations prohibit electricity prices from falling below zero.
In October alone, Germany led the continent with 51 hours of negative pricing on the European Power Exchange, followed by the Netherlands at 46 hours. While autumn storms were considered a primary driver for these recent events, the influence of solar power remains significant. For example, Germany’s solar generation reached a peak of 43 GW on October 2. Even with this high midday output, exchange prices held at a level operators considered strong, around €65 per MWh.
The financial impact of these price fluctuations on solar energy producers is measured by “capture prices,” which reflect the average market price achieved by photovoltaic generation. In October, Germany’s solar facilities secured a capture price of €71.55 per MWh, representing about 84.8% of the average market price. In contrast, Spain’s solar capture price was significantly lower at €42.36 per MWh, just 57.4% of the market average. Austria and France recorded capture rates of 81.5% and 77.8% respectively, illustrating the varying degrees to which solar revenue is being affected across different European markets.