According to S&P Global, rising negative electricity prices are reshaping solar, storage and PPAs across Europe. Wider price spreads are strengthening the case for batteries and more structured renewable energy ontracts.
The expansion of solar capacity is outpacing the market’s ability to absorb its output. High solar production coinciding with moderate demand, wind generation and limited grid flexibility is leading to more frequent periods of oversupply.
As a result, low or negative prices are becoming more common during peak solar generation. At the same time, sharp price spikes are occurring more frequently on summer evenings, when flexible power plants, including gas-fired facilities, must ramp up quickly as solar output falls.
According to S&P Global, negative-price hours in the first half of 2026 across five major European markets, including Great Britain, were around 2% higher than the record levels recorded in the same period of 2025. In 2025 as a whole, the number of negative-price hours was more than 13 times higher than in 2022.
Significant differences remain between markets. France recorded the highest number of negative-price hours, with high nuclear output adding downward pressure on prices. In Germany, higher gas prices supported electricity prices during the summer, while Italy recorded no negative-price hours due to its greater reliance on gas-fired generation.
