Energy producers are being paid not to produce energy and consumers paid to use it as Europe’s grids fail to keep up with the growth of renewable energy systems.
Scottish wind farms were paid to withhold 37% of their potential output in the first half of 2024, the Financial Times reported, enough to power the entire country’s households, because it could not be used locally and the grid could not transmit or store it.
In Spain, electricity prices regularly turn negative due to solar overproduction: “Gratifying for customers, but bad for generators,” which have seen falling profits, the FT said. Solar projects that once sold for €200,000 ($233,000) per megawatt have fallen to €28,000-€89,000.
