Why are European wholesale electricity prices so low?

European wholesale electricity markets have seen zero or negative power prices for the most hours on record this year amid soaring renewable energy generation and a mismatch between supply and demand hours for solar power.

How much energy does wind and solar produce in the EU?

In the twelve months to July 2024 (inclusive), wind and solar produced more than half of EU power in 7% of hours, up from just 2% of hours in the twelve months prior. In the same period, solar and wind covered a minimum of 6% of EU electricity demand across all hours.

Why has Europe clocked a record number of negative power prices?

OSLO/PARIS, June 21 (Reuters) - Europe has clocked a record number of hours of negative power prices this year due to a mismatch between demand and supply as solar power generation soars, potentially helping to shift investment to much needed storage solutions.

Why are power prices so low in Europe?

Wholesale power markets in most of Europe's key economies turned out zero or negative prices for a record number of hours in the first five months of this year at times of low demand. That means producers more frequently have to pay to offload power, or stop their plants.

Why are photovoltaic systems more expensive than wind?

The average sales and capture price of photovoltaic systems fall more sharply compared to wind in both the “Central” and “GoHydrogen” scenarios (see Figure 13). The reason for this is the significant expansion of photovoltaic capacity, including in Germany, in conjunction with the pronounced canniChinasation effect of PV.

Should EU electricity market reform data be publicly available?

Member States and national regulatory authorities should make such data publicly available, as recommended by the European Commission. Data on existing and planned flexibility sources will be key for the new flexibility target-setting exercise established by the latest EU Electricity Market Reform.