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Europe posts record negative power prices for 2024 as renewables rise

The number of periods when day-ahead power prices fell to zero or below hit a record 4,838 instances in Europe in 2024, driven by surging renewables, weak demand, and limited grid flexibility, says Montel Analytics.

PV Magazine January 21, 2025 Brian Publicover

Europe recorded 4,838 periods of day-ahead power prices falling to zero or below in 2024, a record high driven by rising renewable generation, sluggish demand, and constrained grid flexibility, according to a new report from Montel Analytics. The total is nearly double the 2,442 instances that were recorded in 2023.

The Oslo-based market intelligence firm said that the increase was driven by surging wind and solar generation capacity, as well as sluggish demand and limited demand-side response mechanisms.

Finland led in negative pricing at 721 hours, mainly due to high wind production and low grid interconnectivity with Sweden and Estonia, said Montel Analytics. It noted that solar oversupply in the Netherlands and wind output in Sweden also weighed on prices, while the Iberian Peninsula experienced negative prices for the first time during the second quarter of 2024.

The energy data specialist said that renewables accounted for 50.4% of Europe’s total power mix, which was an all-time high. Fossil fuels, meanwhile, dropped to less than 25% of the continental total.

………………………Harreman also noted the widening price gap between solar peak and evening peak periods, as renewables displaced conventional generation.

Industrial demand remained below pre-pandemic levels, and rooftop solar continued to offset household electricity usage, said the company. It reported that total European electricity demand fell 7.7% year on year to 2,678 TWh, underscoring broader economic weakness, particularly in Germany. https://www.pv-magazine.com/2025/01/21/europe-posts-record-negative-power-prices-for-2024-as-renewables-rise/

January 23, 2025 - Posted by Christina Macpherson | EUROPE, renewable