Germany’s negative power prices are heading for first annual decline in four years as stronger electricity demand and changes to renewable-energy support curb oversupply periods. Germany recorded 463 hours of negative hourly prices in 2026 so far, down from 511 at same time last year per Bloomberg data. Spain saw negative prices rise 31% to 703 hours; France also increased.

Sustained drop would ease threat to renewable-energy revenues after rapid wind/solar expansion made below-zero prices common. Levels remain historically high, underscoring challenge of integrating intermittent generation. Germany’s decline suggests imbalance starting to ease.

Kpler Ltd. expects annual total to fall about 13% from 2025. German negative prices particularly plummeted in May and June per Alessandro Armenia, energy analyst at Kpler, due to heat waves boosting demand and weaker wind generation reducing oversupply. Electricity consumption from May through July was 10% higher in 2026 than year earlier per Fraunhofer Institute.

Changes to renewable-support system played role: certain solar plants no longer receive subsidies during negative prices, incentivizing curtailment. Large share of negative hours occurred early in year before becoming less frequent; sub-zero prices rarer in autumn/winter. Spain’s negative prices emerged in 2024 and rose sharply this year due to abundant solar, high hydro reservoirs, and limited export capacity.

France recorded 520 negative-price hours in 2026 vs 493 in same 2025 period, with prices emerging early in year before jumping in April per Armenia, citing increased solar capacity and higher nuclear availability.