Hjartar

Below Zero

Wholesale power priced below zero used to be a curiosity. By 2026 it is a recurring feature of the European grid and a symptom of a system coordination problem.
EUROPEAN POWER MARKETS · WEEK OF 27 APR – 3 MAY 2026 · €/MWh€-600€-500€-400€-300€-200€-100€0€100€200€300€400Mon 27Tue 28Wed 29Thu 30Fri 01Sat 02Sun 03
Day-ahead prices in Europe leading up to the first weekend of May. 1 May is a continental public holiday: industrial demand collapses while solar runs at peak. Many zones are pulled down simultaneously, making it impossible to transfer surplus power. Intraday prices ran deeper still. The surplus extends into Saturday's weekend.

Three forces have to align for the price to fall below zero.

01
Supply
Power generation
Wind and/or solar at full capacity

On a sunny, breezy midday, panels and turbines run at peak. The sun and wind don't slow down when prices fall.

Solar peaks line up across borders

When the sun is high in one country, it's high in its neighbours too. Wind is patchier, so a windy hour in one country might not show up next door.

Plants that can't switch off

Nuclear stations and large coal plants need many hours to throttle down. They keep producing straight through the surplus.

02
Demand
Power consumption
A quiet day on the system

On a weekend or holiday with mild weather, factories are quiet and offices are empty. Demand drops far below normal, and no large buyer is around to soak up the surplus.

Cheap power never reaches the consumer

When wholesale prices crash, household bills don't move. Most retail tariffs are flat across the day, so the price signal never reaches the consumer.

03
Exits
Power transfer and storage
Nowhere to send it abroad

Cables to neighbouring countries are full, and the neighbours are often flooded with surplus too. The extra power has nowhere to go.

Batteries already full

Storage charged up earlier and is now full. The fastest exit is closed, so there's nowhere left to put the extra power.

Negative prices: who wins, who pays?

Winners
  • Batteries Charging through midday, discharging into the evening peak.
  • Industrial flex Smelters, electrolysers, mills called in on hours of notice.
  • Smart households EVs, heat pumps, hot-water tanks scheduled against the day-ahead curve.
Losers
  • Wind & solar (merchant) Selling into the floor they helped create, every megawatt pushing the next price lower.
  • Inflexible thermal Coal, biomass, slow-ramp nuclear that can't get out of the way fast enough.
  • Tax and bill payers Feed-in tariffs and CfDs paying out regardless of where the wholesale clears.

Negative pricing across European power markets is increasing in both duration and depth.

025K50K75K42K202374K202482K202572K2026 YTDJANFEBMARAPRMAYJUNJULAUGSEPOCTNOVDECCUMULATIVE NEGATIVE-PRICE EXPOSURE · ENTSO-E + GB
Sum of |hourly mean| × 1 h, across major European bidding zones, when the day-ahead price cleared below zero.
The line climbs every spring: solar peaks, demand falls (too late to heat, too early to cool), and factories close for Easter and May Day. By mid-May, 2026 has reached 98% of 2024's full year.
Cross-market deep-dive

Five biggest power markets. Five different patterns.

Germany. Solar meets inflexible thermal.

Inflexible thermal.

11 GW of coal plus biomass and district-heating co-generation (CHP) that run for non-electricity reasons.

Largest solar fleet, with legacy subsidies.

Subsidy-era solar from 2010–2014 (built under the EEG feed-in tariff) still pushes prices well below zero early in an event; Germany's 2025 solar peak-cap law (Solarspitzengesetz) applies to new plants only.

Grid challenges.

Wind concentrated in the northern states, demand in the industrial south, cross-border lines fill up when neighbours share the same continental sun.

DE-LU
SOLAR + WIND SHARE OF HOURLY LOAD
Capacity vs peak load (75 GW)
Solar 117 GW 1.55× peak
Wind 77 GW 1.02× peak
Driver of each negative hour
Solar 58.8%
15.7%
Mixed 25.3%
Highest solar/load ratio in Europe; highest solar-led share. Overbuilt solar shows up directly in the scatter.

France. Anchored by nuclear, hit by solar.

Inflexible nuclear.

~63 GW installed, ~40–50 GW typically running, that operators are reluctant to cycle daily for fuel-cycle and capacity-payment reasons.

Modest renewable share.

Only 17% of the mix is solar+wind (nuclear 66%, hydro 11%); solar peaks trigger an event but don't drive prices very far below zero.

Depth set across the border.

The price has to fall toward the floor before a flexible plant on the grid (usually a German coal plant connected by cable) agrees to switch off instead.

FR
SOLAR + WIND SHARE OF HOURLY LOAD
Capacity vs peak load (75 GW)
Solar 28 GW 0.38× peak
Wind 25 GW 0.34× peak
Driver of each negative hour
Solar 68.0%
8.3%
23.7%
The smallest solar+wind fleet of the five — yet two-thirds of negative hours come from solar peaks. A 28 GW midday surge into an inflexible nuclear stack leaves no room to flex; the rest hit overnight when nuclear won't cycle into low demand.

Britain. Wind hits, gas steps out.

Wind-led, not solar.

Most negative hours come from North Sea offshore wind; the rest involve solar alongside a ~15 GW rooftop and small-scale fleet.

Flexible thermal.

Coal phased out in 2024, leaving ~30 GW of gas plus ~6 GW of older UK nuclear that's designed to cycle rather than run flat-out.

CfD subsidy pause.

UK Contracts for Difference don't pay during sustained negative prices, so subsidised plants curtail at zero rather than let prices fall further.

GB
SOLAR + WIND SHARE OF HOURLY LOAD
Capacity vs peak load (41 GW)
Solar 18 GW 0.44× peak
Wind 32 GW 0.78× peak
Driver of each negative hour
Wind 39.1%
Mixed 58.9%
Wind capacity dominates over solar (0.78× vs 0.44× peak); negative hours split between mixed solar+wind conditions and wind-led ones.

Italy. Half gas, no negatives.

€0 wholesale floor.

Italy's wholesale market historically had a €0 floor. It is being lifted to align with EU practice, but no negative prints have appeared yet.

Gas-heavy fleet.

47% of generation is gas; the fleet absorbs surplus before prices fall far below zero. Gas also sets the marginal price most hours, leaving Italy with some of the highest wholesale prices in Europe.

Lower renewable share.

17% solar and 8% wind nationally — just 0.3% wind in the industrial north — well below Germany's or Spain's mix.

Italy is split into multiple market zones; this page shows the northern one, the country's largest by load and most cross-border traded. The southern zones have different solar and wind mixes, but the €0 floor applies nationally, so none of them have produced negative prices either.

IT-NORD
SOLAR + WIND SHARE OF HOURLY LOAD
Capacity vs peak load (27 GW)
Solar 14 GW 0.51× peak
Wind 0.2 GW 0.01× peak
Driver of each negative hour
No negative hours observed in window
Italy's renewable CfDs treat negative prices as zero, a mechanism in force since 2025 and locked through 2028. Price discovery stops at zero: curtailment manages oversupply, cross-border spreads run one-sided, flexibility earns less.

Spain. Trapped surplus, gently absorbed.

Trapped peninsula.

~3–4 GW interconnector to France against 70 GW peak load. When Spain is in surplus, neighbours usually are too — exports don't help.

Hydro absorbs.

16% of the fleet pumps when prices touch zero, draining surplus before prices fall far below zero.

Merchant curtailment.

Solar built post-2018 isn't on a fixed subsidy, so it shuts off rather than letting prices fall further; clearing rules at the Iberian wholesale exchange (OMIE) limit how far prices can fall too.

ES
SOLAR + WIND SHARE OF HOURLY LOAD
Capacity vs peak load (37 GW)
Solar 41 GW 1.11× peak
Wind 32 GW 0.87× peak
Driver of each negative hour
Solar 59.8%
19.3%
9.8%
11.1%
Most negatives of any market. Solar overbuilt, wind nearly so — pattern fragments across solar peaks, mixed conditions, and hydro and industrial plants that can't switch off.
430 negative hours deepest EUR -415 3 below -EUR 200
59% solar-led 16% wind-led 25% mixed solar+wind
Capacity vs peak load (75 GW)
Solar 117 GW 1.55× peak
Wind 77 GW 1.02× peak
Driver of each negative hour
Solar 58.8%
15.7%
Mixed 25.3%
Highest solar/load ratio in Europe; highest solar-led share. Overbuilt solar shows up directly in the scatter.

Negative prices are a symptom of coordination failure.

Solar & wind buildout
Wind and solar capacity has rapidly scaled, leaving large surpluses of generated energy, often at midday.
Storage
Battery installations are scaling in response to the arbitrage opportunity, but not yet enough to absorb the surplus.
Thermal plants
Turning thermal plants off is costly. Some will stay on during negative prices and contribute to the surplus.
Demand
Households pay flat retail tariffs; factories run on shifts. Neither sees the hourly wholesale price.
Interconnection
Cross-border interconnection takes a decade or more to plan and build, and many projects run late. New capacity arrives years after it is needed.
Market design
A large part of installed renewables earn fixed revenue (FITs, CfDs, PPAs) regardless of the wholesale price and keep generating through zero and negative prices. Large bidding zones hide grid congestion from the wholesale price.

Thanks for reading

Negative prices are no longer an oddity. By 2026 they're a recurring feature of every European spring, getting deeper year by year.

What looks like a renewables glut is a coordination failure. Across the system, actors keep making decisions that each make sense on their own, but stack into surplus.

The fix is in the wiring between them. Until that catches up, every spring runs the same script.

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Sources & methodology
Below Zero
ENTSO-E A44 day-ahead prices for EU + UK + NO + CH bidding zones, hourly resolution, 2026-04-27 to 2026-05-03. GB from Elexon. 41 zones × 168 hours = 6,888 zone-hours; short publication gaps interpolated linearly. Built by scripts/build-baseline-week.py and shipped as src/lib/data/heartbeat-week-baseline.json.
Three forces have to align for the price to fall below zero.
Editorial framework. Supply mechanisms: ENTSO-E generation by source 2024–2026 (renewables non-dispatchable share); subsidy clawback rules per Bundesnetzagentur EEG §51 (DE) and CRE 2025 review (FR). Demand mechanisms: Eurostat hourly load profile by day-type 2024; Eurelectric retail tariff structure survey 2025. Exits mechanisms: ENTSO-E cross-border physical flows on holiday days; European BESS fleet ~30 GW operating per Aurora Feb 2026.
Negative prices: who wins, who pays?
Editorial framing. Roster items reflect the asset-class winners and losers of the negative-price signal: Batteries / industrial flex / smart households on the wins side; merchant wind & solar / inflexible thermal / bill-payers (via network charges and CfD socialisation) on the losers side.
Negative pricing across European power markets is increasing in both duration and depth.
ENTSO-E A44 day-ahead prices for the European bidding zones (40 zones, excluding Ukraine) plus Elexon BMRS for GB. Method: each hour where the volume-weighted hourly mean of the day-ahead price clears below zero contributes |hourly mean| to a running total. Mid-2025 transition from PT60M to PT15M MTU handled by aggregating 15-min slots to hourly volume-weighted means. 2023 final: ~42K. 2024 final: ~74K. 2025 final: ~82K. 2026 YTD (through 12 May): ~72K.
Five biggest power markets. Five different patterns.
ENTSO-E day-ahead prices and per-fuel generation for DE-LU, FR, GB, IT-NORD, ES (hourly, May 2025 – May 2026 trailing window). Solar+wind share is hourly (wind + solar) divided by hourly load. Each dot is one cleared hour; negative-priced hours are coloured by which renewable dominated supply (solar ≥ wind = amber, wind > solar = cyan). Stats are computed on the full trailing-year set, not the 5,200-point sampled cloud, so headline counts are exact. Capture-rate and capacity-target figures cited in prose come from EMBER 2025, RTE Bilan Électrique 2025, NESO Future Energy Scenarios 2025, Terna PNIEC 2024, Red Eléctrica de España PNIEC 2024, and the German Solarspitzen-Gesetz 2025.
Negative prices are a symptom of coordination failure.
Editorial framing. Solar & wind buildout: ENTSO-E generation by source 2024–2026, Aurora EU renewables forecast Feb 2026. Storage scale: Aurora EU Storage Forecast Feb 2026 (~30 GW operating in Europe); BNEF Battery Price Survey Dec 2025 (cell-cost trajectory). Thermal must-run economics: ENTSO-E minimum-run constraints per market, Eurelectric thermal fleet reporting 2025. Demand inelasticity: Eurostat hourly load profile by day-type 2024; Eurelectric retail tariff structure survey 2025. Interconnection lead times: ENTSO-E Ten-Year Network Development Plan 2024 (project status and slippage). Market design: per-country subsidy regimes (DE EEG, UK CfDs, ES PPAs); ACER bidding-zone review 2024.