Europe recorded 4,838 periods of day-ahead power prices falling to zero or below in 2024, a record high driven by rising renewable generation, sluggish demand, and constrained grid flexibility, according to a new report from Montel Analytics. The total is nearly double the 2,442 instances that were recorded in 2023.

The Oslo-based market intelligence firm said that the increase was driven by surging wind and solar generation capacity, as well as sluggish demand and limited demand-side response mechanisms.

Finland led in negative pricing at 721 hours, mainly due to high wind production and low grid interconnectivity with Sweden and Estonia, said Montel Analytics. It noted that solar oversupply in the Netherlands and wind output in Sweden also weighed on prices, while the Iberian Peninsula experienced negative prices for the first time during the second quarter of 2024.

The energy data specialist said that renewables accounted for 50.4% of Europe’s total power mix, which was an all-time high. Fossil fuels, meanwhile, dropped to less than 25% of the continental total. Nuclear generation rebounded to 24.7%, bolstered by the recovery of France’s nuclear fleet.

France exported its highest level of electricity in 22 years. “French nuclear availability gradually returned across 2023 and early 2024 after having undergone historic lows in 2022,” said Montel Analytics Director Jean-Paul Harreman in an online statement.

Despite bearish price signals from demand, European gas prices rose 5.6% year on year to €43 ($44.50)/MWh, due to geopolitical tensions and declining Russian pipeline flows. Mild weather limited gas storage drawdowns, leaving storage at 76% capacity heading into the winter, which was a safe level for average conditions, according to the company.

Harreman also noted the widening price gap between solar peak and evening peak periods, as renewables displaced conventional generation.

Industrial demand remained below pre-pandemic levels, and rooftop solar continued to offset household electricity usage, said the company. It reported that total European electricity demand fell 7.7% year on year to 2,678 TWh, underscoring broader economic weakness, particularly in Germany.