Record-Zonne generation throughout Europe and limited storage capacity stimulates an increase in the negative electricity price hours, whereby the price of less than zero is expected to reach new highlights in the third quarter, according to Montel Analytics.
The growing frequency of negative electricity prices in Europe is mainly powered by increasing levels of solar generation, according to a report from energy research agency Montel Analytics.
In the summary of the European electricity market for the second quarter of 2025, Montel Analytics said that almost all European countries experience an increased number of negative price hours this year, whereby the trend is expected to continue in the future.
The SE2 price zone of Sweden registered the largest number of negative price hours in the six months to the end of June, a total of 506. The report said that this was driven by “unusually strong hydro-inflow, bottlenecks of transmission, changes in flow-based market coupling and renewable build-out.”
Elsewhere, the number of negative price hours also exceeded 300 in Spain (459), the Netherlands (408), Germany (389), France (363), Belgium (361), Finland (363) and Denmark 1 (326).
Montel Analytics presented the increased frequency in the prices of less than zero at a record level of solar generation in the three months to June, up to 104.4 TWH for the second quarter of 2025, combined with a lack of storage and flexible demand to exceed.
Jean-Paul Harreman, director at Montel Analytics, said that he expects negative energy prices to reach record levels in parts of Europe in the third quarter of this year. He said this will be powered by ‘continuous expansion of renewable energy sources without A proportional increase in the underlying question … Germany, the Netherlands and Belgium will probably continue to experience competitive negative prices in the afternoon, followed by high prices in the evening as the capacity of fossil fuels rises. “
He added that a similar pattern pops up in parts of Southeastern Europe.
“However, it is expected that restrictions in the grid infrastructure and cross -border interconnection capacity will reduce the ability of this region to take advantage of lower prices in neighboring markets,” Harreman said.
Earlier this week, the London -based think tank Ember said that the generation of records in the European Union was the key to Stabilization of the food of the continent During the recent heat wave.
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