Germany records surge in negative electricity prices and promotes dynamic tariffs

In the first five months of 2026, the German power market logged 242 hours of negative electricity prices on the EPEX Spot exchange, an average of €‑28.65 per megawatt‑hour, beating the previous record set in 2025. The price collapses occur when renewable generation, especially solar and wind, exceeds demand and the inflexible grid cannot absorb the surplus. In response, Economy Minister Katherina Reiche announced the termination of feed‑in tariffs for new solar installations, aiming to curb costly export subsidies.

At the same time, Germany is expanding dynamic electricity tariffs that vary hourly with market prices. Since 2025, all suppliers must offer these tariffs to customers with smart meters. The schemes encourage households equipped with photovoltaics, battery storage, heat pumps or electric‑vehicle chargers to shift consumption to low‑price periods, reducing grid strain and renewable curtailment. Implementation relies on smart‑meter data, mini‑computers and automated control systems.