European electricity markets see price spikes from solar power without storage

The rapid expansion of photovoltaic generation across Europe is creating extreme intra‑day price volatility in wholesale electricity markets. During sunny midday hours, abundant solar output pushes wholesale prices down to zero or even negative levels. After sunset, when demand remains high and solar output drops, the system must rely on more expensive conventional generators, causing prices to surge.

The effect, known as the “duck curve,” has been illustrated by a May day in Germany where prices moved from negative values at noon to nearly €400 per megawatt‑hour by evening. A similar pattern appears in Greece, where the domestic wholesale price ranged from €0.01/MWh at its low to €295.10/MWh at its high, with an average of €142.24/MWh.

Analysts attribute the sharp swings primarily to the lack of large‑scale electricity storage, which prevents excess solar energy from being retained for use later in the day, especially during hot summer periods when air‑conditioning demand stays elevated.