Rapid expansion of renewable energy in Spain has led to a surplus of electricity, resulting in periods of negative prices, Bloomberg reported.
Around $80 billion has been invested in the sector over the past 15 years, with solar plants now generating more electricity than the grid can absorb.
In 2025, new solar capacity pushed prices during peak hours below zero, meaning producers effectively paid consumers to use electricity. In the first half of 2026, Spain recorded a new high in the number of such “negative price” hours, with solar overtaking wind as the country’s main source of electricity.
While consumers benefit from lower tariffs—around half those in Germany—the imbalance poses challenges for investors and utilities. Storage and distribution infrastructure is struggling to keep pace with the expansion.
Authorities describe the situation as transitional and plan to invest around €30 billion in modernising the energy system by 2030.
By Aghakazim Guliyev
