Europa Posted on 2026-07-27 10:24:00

Consequences of overproduction of renewable energy - Production stops as too much investment is required for storage

From Dorian Koça

Consequences of overproduction of renewable energy - Production stops as too

Solar and wind farms in Europe are actively choosing not to produce power, as experts warn that more investment in storage and flexible technologies is needed. Renewable energy covered 45.5 percent of the EU’s total energy in the first quarter of 2026, as member states continue to move away from polluting fossil fuels. Wind led the way, covering 44.9 percent of the total renewable energy mix, followed by hydroelectric power (28 percent) and solar power (17.3 percent).

This comes at a time when the war with Iran is driving up oil and gas prices, pushing Europeans further towards a green transition. However, negative energy prices are also on the rise - reaching record levels in areas such as the Iberian Peninsula. Here the wholesale price of electricity drops below zero due to an excess of supply over demand.

This is a growing concern amid the renewable energy boom, as solar and wind power generate power in response to specific weather conditions, rather than current demand. As a result, renewable energy production is often temporarily interrupted or put on reduced output (known as curtailment). This can also happen when extreme weather poses a risk to renewable energy production (for example, when there is too much wind for the turbines to operate safely).

When curtailment occurs simply because generating electricity is no longer economically viable (as opposed to grid constraints), this is known as price-sensitive curtailment or commercial curtailment.

A new analysis from energy market intelligence provider Montel found that commercial capping was lifted across most of the continent in the first half of 2026 compared to the same period last year – with one major exception. Germany saw commercial capping rise by 20 percent, from 1,216 to 1,463 GWh, even as negative price hours in the country fell from 389 to 299, a 23% drop.

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