Electricity prices in Europe continue to fluctuate significantly, and negative hours are becoming more frequent on sunny days. “Investors can benefit from diversifying nationally to limit volatility in their portfolios. The expansion of power storage facilities should bring additional stability in the near future,” says Patrick Lemcke-Braselmann, Co-CEO of aream Group SE.

In July, a megawatt hour of electricity cost an average of just under €88 on the spot market in Germany – 30 percent more than in May. At the same time, the number of negative hours, which typically occur around midday, is likely to increase again in August due to high solar radiation. “Hours with negative prices are not a new phenomenon, but they are a regular issue on the market in Germany in the summer when high availability of photovoltaic electricity meets weak demand,” says Lemcke-Braselmann.

The trend is similar in other European markets, although the fluctuations and price levels vary significantly from region to region. In Spain, for example, the lowest drop in May was particularly low at €16.93. 

However, the spot market price has since almost tripled to around €65 in July. In France, on the other hand, the spot price has almost been cut in half since the beginning of the year, then again almost tripled from May to July to just under €58. For August, a lower price is expected with an anticipated number of negative hours in the low triple digits. “At the same time, with the heatwave in France, we can expect nuclear power plants to be temporarily shut down again, which could drive prices up,” says Lemcke-Braselmann. But even though price trends in Germany and other European markets correlate to some extent, differences between individual countries dampen the swings – and thus limit volatility in the portfolio.

From an investor’s perspective, the sometimes significant fluctuations that occur during the course of the day will become an increasingly manageable phenomenon in the future: “Electricity storage systems are an essential component in reducing the fluctuating availability of solar power and the subsequent price volatility. That is why we are strongly committed to expanding power storage solutions,” says Lemcke-Braselmann. " Power storage systems will increasingly become a core element in further advancing photovoltaics as a cornerstone of the energy transition – while at the same time maintaining their position as an attractive investment.