2024 saw a record number of negative electricity prices in the EU, with Finland recording the most

2024 was a record year for the number of hours with negative electricity prices on spot markets in European Union countries. Compared with the previous record year, 2023, their number almost doubled. The number of hours with zero electricity prices rose even more, tripling year on year. This is shown by data published on Energostat, which draws on data from the ENTSO-E Transparency Platform.

As installed capacity from solar and wind power plants grows, so too does the number of hours with zero or negative prices on European day-ahead electricity markets. These prices occur because electricity demand is insufficient during hours of high output from these sources.

According to data published on Energostat, the number of hours with negative prices in EU countries rose from the previous record of 3,340 hours set in 2023 to 6,530 hours. The number of hours with zero prices increased from 833 to 2,421.

For the second year in a row, Finland recorded the most hours with negative prices, at 716 (up 53% year on year). Finland also had the highest combined total of hours with negative or zero electricity prices, with such prices occurring on average every tenth hour.

The highest number of hours with zero prices was recorded in countries on the Iberian Peninsula. Spain recorded 534 (nearly five times more year on year), while Portugal recorded 525 (more than seven times more). Both countries also saw negative electricity prices for the first time last year: 244 hours in Spain and 194 in Portugal.

Czech Republic above the EU average

Although the Czech Republic has yet to match the countries mentioned above in terms of the number of hours with negative or zero electricity prices, it is above the European average in this statistic thanks to the rapid expansion of solar power plants over the past two years.

Last year, the Czech day-ahead market recorded a total of 314 hours with negative electricity prices (up 134% year on year) and 47 hours with zero electricity prices (up 113% year on year).

The distribution of negative and zero electricity prices throughout the day shows a strong correlation with solar power generation. Data published on the ENTSO-E website show that almost 15% of Czech solar power plants’ output last year was generated during hours when the market price of electricity was zero or negative.

Low day-ahead market prices during hours of solar generation negatively affect the profitability of solar power plants when their revenues depend on those prices. This applies to most projects without operating support or a power purchase agreement (PPA).