Europe has successfully delivered on the first stage of the energy transition, achieving the decarbonisation of 74% of its electricity mix . Moving forward, the second stage of the transition will require not only the continued expansion of clean and renewable capacity, but also significant investments in flexibility solutions, storage assets and to further boost electrification. Against this backdrop, the recent rise of negative power prices highlights the challenge posed by a stagnating rate of electrification (stuck at around 23% for the past decade ), decreasing electricity demand (down by 7.5% in 2023 compared to 2021 ) and limited flexibility resources within the power system. However, what the data alone does not capture is the multifaceted drivers behind ultra-low and negative prices across Member States. Recognising that there is no one-size-fits-all solution, Eurelectric has conducted a comprehensive analysis to outline the impacts, drivers, and potential solutions across the Union.
