A sunny weekend in northwest Europe plunged power prices in the region to hundreds of euros below zero on Sunday afternoon as solar generation soared.

Spot power prices in Belgium sank to as low as -$302 (-266 euros) per megawatt-hour (MWh) between 1 p.m. and 2 p.m. on Sunday, according to data from Epex Spot SE cited by Bloomberg.

During the same hour, power prices in Netherlands plunged to -$215.60 (-189.90 euros), while prices in Germany dropped to -$147.40 (-129.81) per MWh.

Negative power prices, while beneficial for some consumers in some countries, generally discourage investments in new capacity as renewable power generators don’t profit from below-zero prices.

The more frequent occurrences of negative prices amid soaring solar output aren’t conducive to increased investment in generation only, and highlight the need of energy storage solutions to store the excess power and discharge it at evenings when it’s most needed.

Solar generation capacity and output in Europe have surged this decade, especially after the Russian invasion of Ukraine cut off many EU countries from Russian pipeline gas deliveries. The EU aims to ditch Russian gas dependence by 2027 and has been racing to build renewable energy capacity.

However, without adequate and proportionate battery storage buildout, Europe risks even more frequent negative price events that are loss-making for renewable energy generators.

Overall, electricity prices in Europe are falling this spring from two-year highs in the winter of 2025 as natural gas prices fall and renewable power generation jumps. The end of the winter, the recovery of wind power generation, and the rise in solar output in the springtime have now more than halved Europe’s wholesale spot power prices compared to the highs seen early this year.

Solar output in Europe is soaring and is set to boom in the summer. But the volatile gas market could begin pushing power prices up later this year with the coming of the next winter.

By Charles Kennedy for Oilprice.com

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