Electricity prices in Europe fell to a record negative level because of a surge in solar generation

On Sunday, April 26, spot electricity prices in Europe collapsed to historic lows. The reason was a combination of strong solar generation, weak weekend demand, and mild spring weather.

The steepest drop was recorded in the Netherlands, where the day-ahead market price at 2:00 p.m. Central European Time fell to -€479.59 per MWh. In Belgium, the figure reached -€479.27/MWh, and in France -€478.80/MWh. During peak solar output hours, most continental European countries were trading in a range between -€400 and -€200 per MWh.

The new low surpassed the previous record set on April 7, when intraday prices in Germany fell to -€323.96/MWh and in France to -€230.31/MWh.

This sharp drop can no longer be considered an anomaly. Negative prices are becoming a structural feature of the European energy market: supply is increasingly exceeding demand, especially during periods of strong renewable generation. In such hours, producers are effectively paying to dump excess electricity into the grid.

The trend has intensified in 2026. According to Montel, Europe generated a record 384.9 TWh of electricity from renewable sources in the first quarter, while solar generation reached a maximum for that period. In Germany, wind power production in the first three months of the year rose by 27% year-on-year. In Spain, the number of hours with negative prices more than tripled, while in France it nearly doubled.

The paradox is that record-low prices during certain hours coexist with still-high average electricity prices in Europe. The market remains sensitive to gas prices, storage levels, and geopolitical risks.

The situation highlights the main challenge of the energy transition: on sunny weekends, renewable generation can almost drive electricity prices to zero, but without sufficient storage, flexible demand, and grid modernization, such price collapses only increase market volatility.