Germany’s day-ahead auction settled below zero for 6 individual hours on Tuesday, data from Epex Spot SE show. Wind generation in the nation is set to average 22.7 gigawatts on Wednesday, the highest in 4 months, according to Bloomberg models and data from ENTSO-E.

Negative prices are becoming more regular alongside the build-out of renewables. Solar and wind are the two major sources, and when they both see strong generation on the same day there can be a glut of cheap energy. In the future, batteries will become key to store this energy for when the renewable sources generate at a lower level.

Prices in France, The Netherlands, Belgium and parts of the Nordic region also turned negative.

The German day-ahead price settled at €52.62 per megawatt-hour, down 43% from a day earlier. The equivalent in France settled at €39.29. ©2024 Bloomberg L.P.