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Negative Power Prices Spike Across Europe Amid 53 GW Solar Peak, Bloomberg Analysis Says

-- Negative electricity prices surged across Europe as solar output topped 53 gigawatts, according to a Bloomberg analysis on Wednesday.

Spain recorded the steepest rise, with negative-price hours jumping to 381 this year from 120 a year earlier, the analysis said, citing data from Operador del Mercado Iberico de Energia.

France nearly doubled its count of sub-zero pricing hours over the same period, while Germany saw an increase of about 50%, according to Epex Spot SE data cited in the analysis.

Much of the negative pricing occurred in April as longer daylight hours boosted solar generation across key markets, the analysis said.

A high-pressure system over northern Europe brought clear skies and strong northeasterly winds, lifting both solar and wind output in countries including Germany and France, according to the analysis.

Weather forecasts indicated that renewable generation would remain elevated during the week, further putting downward pressure on electricity prices, according to MetDesk data cited in the analysis.

Germany recorded solar output exceeding 53 GW on Wednesday, nearing historic highs, as the Fraunhofer research institute reported strong generation levels, according to the analysis.

The pattern shows solar power is now often producing more electricity than needed during midday, while limited storage and weak grid networks make it difficult to store or move the excess supply, the analysis noted.

Day-ahead electricity contracts fell into negative territory across major European markets on Wednesday, reflecting oversupply conditions.

Prices dropped to about -49.56 euros ($58.09) per megawatt-hour in Germany, -48.97 euros/MWh in France, and -49.37 euros/MWh in the Netherlands, according to Epex Spot data cited in the analysis.

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