Renewable energy markets face challenges from negative prices and storage shortages

Renewable energy markets in Southeast Europe are undergoing a structural shift due to frequent negative electricity prices and the increasing role of battery storage. In Croatia, more than 200 hours of negative prices have been recorded since the start of the year, forcing solar and wind producers to transition from passive selling to active production management to avoid revenue losses.

In Greece, the rapid growth of renewable energy is outpacing storage capacity, creating a significant economic burden. The lack of sufficient battery systems leads to increased curtailment of green energy, with estimates suggesting that between 3 and 3.2 TWh of production could be lost this year. This deficiency is estimated to cost the system approximately 1 billion euros annually, as the grid is forced to rely on more expensive thermal units when renewable supply exceeds demand and cannot be stored.

As the market evolves, the focus is shifting from total volume to value optimization. Producers are increasingly utilizing balancing markets and secondary reserves to manage volatility, making battery storage a central pillar of regional energy strategies.