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Akbar Novruz

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Electricity prices in parts of Europe dropped to unprecedented negative levels, reflecting a growing imbalance between supply and demand in the region’s energy systems, AzerNEWS reports.

According to EPEX SPOT, prices in Germany and France fell to as low as -500 euros per megawatt-hour during morning trading hours. In several countries, electricity prices remained in negative territory even by midday. Analysts at ANE GmbH & Co. KG expect this trend to continue over the weekend.

The sharp decline is largely attributed to excess electricity generation, driven by reduced industrial consumption and a surge in renewable energy output. Prices reached record lows on Friday, particularly in Germany and France, as peak solar generation coincided with public holidays across much of the region.

The increasing share of renewable energy in Europe’s energy mix has made such negative pricing events more frequent. However, structural challenges remain, including limited energy storage capacity and grid bottlenecks that prevent efficient distribution of surplus electricity. As a result, some solar power plants have been forced to temporarily halt production.

Despite the recent fall, electricity prices dropping below -100 euros per megawatt-hour remain relatively rare. Data compiled by Bloomberg based on EPEX SPOT figures shows such events have occurred only 17 hours in Germany and 15 hours in France so far this year.

Bloomberg also forecasts that solar power generation in Germany could reach around 53 gigawatts on Friday, potentially surpassing electricity demand and further pressuring prices.

Public holidays observed on Fridays or Mondays in countries including Germany, France, the United Kingdom, and Spain have also contributed to lower consumption levels, amplifying the mismatch between supply and demand.