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Europe Electricity Prices Slide to Multi-Year Lows on Solar Spike, Bloomberg Analysis Says

-- French power prices dropped to minus 188.98 euros ($221.5) per megawatt-hour, the lowest since 2013, as solar output surged across Europe, according to a Bloomberg analysis on Friday.

Solar output rose sharply this week as clear skies and cooler temperatures improved panel efficiency across western Europe, the analysis said.

Production is expected to remain above seasonal norms through the weekend, supported by favorable weather conditions, the analysis added, citing MetDesk.

France has rapidly expanded solar capacity, more than doubling installations over the past four years, according to BloombergNEF data, cited in the analysis.

Midday supply has increasingly outpaced demand as solar generation peaks, pushing power prices into negative territory across several European markets, the analysis said.

Grid constraints and limited storage capacity have restricted the system's ability to absorb excess electricity, forcing operators to scale back production to maintain balance, the analysis added.

Germany may see solar output reach a record 54 gigawatts on Saturday, with additional support from strong wind generation, according to the analysis.

Power prices in Germany's day-ahead market dropped to minus 190.87 euro per megawatt-hour, the lowest level in more than a year, the report said.

The UK has also recorded strong solar output, with generation expected to reach around 13 GW over the weekend after setting a record earlier this week, the report added.

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