MADRID (Reuters) -Spain this year has clocked a growing number of hours with solar power prices at zero or even negative levels, which arise when supply exceeds demand and producers need to pay to offload power or stop plants, industry group UNEF said on Tuesday, a trend that could compromise the country’s green energy shift.
KEY NUMBER
Between January and September this year, solar power producers faced 693 hours of negative or zero power prices, reaching the total for last year, UNEF said.
“This issue, along with low and unstable capture prices show that reforms of electricity prices are urgent,” said UNEF head Jose Donoso, referring to the average price per megawatt-hour solar power producers receive for the electricity sold in the market.
WHY IT IS IMPORTANT
Spain has set ambitious targets in its climate and energy plan. The warning comes as the country needs to speed up the rollout of renewables projects to meet such goals.
CONTEXT
Zero or even negative power prices have become a growing issue for Europe in general. The massive expansion of renewable power contributes to a mismatch between demand and supply, aggravated by a lack of necessary storage capacity.
(Reporting by Pietro Lombardi; Editing by Alexandra Hudson)
