(Bloomberg) -- German power prices dropped below zero on the first trading day of the year, an increasingly frequent phenomenon in Europe as renewables expand.
Intraday prices in Germany, the region’s biggest market, turned negative during four hours overnight as wind-energy output reached as much as 40 gigawatts, far outstripping demand.
The continent’s power markets experienced record periods of negative prices last year as rapid growth in wind and solar capacity boosted generation. Germany notched up 468 hours, 60% more than a year earlier, according to data from Epex Spot. In France, below-zero hours more than doubled to 356.
The trend has prompted some politicians to call for curbs on subsidies, since governments have to ensure producers get paid a minimum fee even when the power isn’t needed.
Big shifts in renewable generation demonstrate the challenge confronting countries as the energy transition accelerates. Fluctuations in the weather whipsawed the European market last month, with a prolonged stretch of calm days halting wind turbines and a subsequent resurgence of blustery conditions.
Spain saw negative prices for the first time last year, totaling 247 hours.
In the European Union as a whole, below-zero prices were recorded in at least one so-called bidding zone 17% of the time, according to industry group Eurelectric.
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