Germany risks negative electricity prices over Pentecost weekend

The German power market may see sharply negative day‑ahead prices during the Pentecost weekend, with forecasts showing prices as low as minus 87 €/MWh on Sunday noon. The situation mirrors a similar episode on May 1, when prices fell to minus 499 €/MWh and intraday values reached minus 855 €/MWh, generating more than €100 million in extra costs for taxpayers and consumers.

The price drop is driven by a combination of strong solar and wind generation on a sunny, warm holiday weekend and weak industrial demand. Many photovoltaic installations continue to receive guaranteed feed‑in tariffs under the Renewable Energy Act even when market prices turn negative, further subsidising the oversupply. Energy experts note that hours with negative prices rose from 301 in 2023 to 573 the previous year, highlighting structural imbalances in storage and grid expansion.

Industry groups have called for seven immediate measures, including accelerated battery deployment, greater flexibility of large consumers, and more controllable renewable plants, to absorb excess generation and stabilise the market.