Published by Global Banking & Finance Review®
Posted on October 7, 2025
2 min readLast updated: January 21, 2026
Add as preferred source on GoogleSpain's solar industry warns of zero or negative power prices threatening the energy transition, urging urgent reforms to meet climate goals.
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)
Solar power is energy derived from the sun's rays, which can be converted into electricity or heat using solar panels and other technologies.
Negative power prices occur when electricity supply exceeds demand, causing producers to pay to offload their power instead of receiving payment.
Renewable energy is energy generated from natural resources that are replenished constantly, such as solar, wind, and hydropower.
Electricity prices refer to the cost per unit of electricity consumed, which can fluctuate based on supply and demand dynamics in the market.
Energy transition is the process of shifting from fossil fuel-based energy systems to renewable energy sources to reduce carbon emissions and combat climate change.
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