Solar industry in Spain warns about price threats to energy transition

The number of hours in which solar power prices were zero or negative has increased this year, a sign that the supply is exceeding demand, and producers are forced to pay for power offloading or to stop their plants. This trend could threaten Spain's move to green energy.

KEY NUMBER

UNEF reported that between January and September of this year, solar energy producers experienced 693 hours with negative or zero electricity prices, which is the same as last year.

The UNEF's Jose Donoso said, "This issue and low and instabile capture prices show the urgent need for reforms to electricity prices." He was referring to average prices per megawatt hour solar power producers get when they sell electricity on the market.

Why it is important

In its Climate and Energy Plan, Spain has set itself ambitious goals. The warning comes at a time when the country must accelerate the roll-out of renewable energy projects in order to achieve such goals.

CONTEXT

The issue of negative or zero power prices is becoming more and more prevalent in Europe. Massive expansion of renewable energy contributes to an imbalance between supply and demand, which is exacerbated by the lack of storage capacity. (Reporting by Pietro Lombardi; Editing by Alexandra Hudson)

(source: Reuters)