Summer is only halfway over, but last Sunday, last year’s Belgian record of 408 hours of negative electricity prices was broken.

This means that once again, we generated more electricity than we consumed, causing the price to drop so much that it fell below zero euros.

A significant factor contributing to these frequent negative prices is the abundant sunshine in spring, combined with an increasing number of solar panel installations on homes and businesses.

A dynamic contract will benefit most

“Those with a dynamic contract benefit most from negative electricity prices because the price charged fluctuates with the hourly electricity prices. 

Those with a permanent contract will not feel any difference. And those with solar panels should switch them off for a while.”

If this trend continues, we are heading for around 800 hours of negative electricity prices this year, double the number in 2024, energy experts at Eneco predict.

Increasingly common

In recent years, negative electricity prices have become increasingly common. Electricity prices on the wholesale market sometimes dip well below zero euros (per MWh), especially on sunny weekends when solar panels are producing plenty of green energy and demand is low.

Between May 11 and July 1, Eneco recorded both a low and a high record for the electricity price on the wholesale market.

Record

In 2024, the Netherlands experienced a total of 408 hours with negative electricity prices, a record. That 2024 record has now been broken on Sunday, and summer is only half over. What we also see more and more often are extreme price fluctuations.

Today, it is a significant challenge for the sector, companies, and private individuals to address this issue. Supply and demand must always be in balance to ensure grid stability.

“This is an evolution that everyone will have to take into account, including the government,” explains Pieter Verlinden, Head of Sources & Pricing, Eneco.

Smart solutions

“If we use all possible solutions to counter these large fluctuations – think of smart home batteries, dynamic energy contracts, power-switching plans for companies (curtailment, or the temporary shutdown of solar installations), and the storage of surplus power in large battery parks – then these negative electricity prices do not have to be an obstacle in the further transition to even more renewable energy,” says Pieter Verlinden of Eneco.

Quite the opposite. Negative power hours can even be an opportunity for businesses and individuals to more quickly increase their own energy supply independence from the grid and strategically smooth out large consumption peaks with their stored electricity.

Eneco pleads for smarter grid tariffs

Last month, Eneco launched its smart home battery, a solution that enables private individuals to benefit from negative electricity prices.

Eneco also advocates for the introduction of smarter grid tariffs, rather than adhering to the current electricity bill, which is essentially a hidden tax and imposes levies on users even when prices are negative.