Key facts
- Germany's commercial curtailment of renewable energy increased by 20% in the first half of 2026.
- This increase is linked to Germany's Solar Peak Act, which removes subsidies when wholesale prices turn negative.
- Other European countries like France and Finland have seen significant decreases in commercial curtailment.
- Experts emphasize the need for investment in battery storage, smart meters, and demand-side flexibility to manage renewable energy surpluses.
- Renewable energy sources, primarily wind and solar, are increasingly contributing to the EU's electricity mix.
Europe's increasing reliance on renewable energy sources like solar and wind is leading to a growing problem of 'commercial curtailment,' where generation is deliberately switched off due to negative wholesale electricity prices. In the first half of 2026, Germany saw a significant 20% increase in this practice, reaching 1,463 GWh, despite a 23% decrease in the number of hours with negative prices. This is largely attributed to Germany's Solar Peak Act, which removes subsidies for newly commissioned renewable assets when prices dip below zero, creating a strong financial incentive for operators to cease generation.
This situation contrasts with other European nations. France, for example, experienced a 32% fall in commercial curtailment, even as negative price hours rose, due to subsidy rules that encouraged continued production. Finland saw the most dramatic reduction, with curtailment dropping by 89%, driven by a hydrological deficit in the Nordic region that increased wholesale prices and reduced oversupply. Other countries like the Netherlands, Belgium, Switzerland, and Poland also reported decreases in commercial curtailment.
Experts, including report author Jean-Paul Harreman, emphasize that national market design, subsidy regimes, and weather patterns are increasingly shaping commercial curtailment, rather than just the growth of renewables. The findings highlight a critical need for greater investment in energy storage solutions, such as batteries, and demand-side flexibility technologies. Battery storage capacity is projected to triple by 2028, and reports suggest that combining solar and wind with battery storage can make them cost-competitive with new coal plants while ensuring reliable 24/7 electricity supply. Smart meters and household electrification, such as electric vehicles, are also identified as key strategies to better align electricity demand with abundant renewable generation, thereby preventing negative price scenarios.