(Bloomberg) -- Germany’s expanding array of solar panels set a new generation record as renewables take a larger share of power output from more expensive fossil fuels.
Production reached as much as 48,681 megawatts at midday in Berlin, according to data from the European Energy Exchange AG. That bucks a trend for solar record to be broken in the spring, when conditions are sunny but not too hot to impact panel efficiency.
German solar generation is set to rise 34% this summer compared with a year earlier as additional capacity is added, according to BloombergNEF. The steep growth of solar power in Germany, alongside the lack of demand recovery since the energy crisis, means longer-term contracts remain low as more expensive fossil fuel sources are displaced for cheaper renewables.
On days with very high solar generation, prices can drop to negative levels as the grid has to find ways to cope with the surge in production.
Hourly day-ahead auctions for Germany for delivery today settled below €0 per megawatt-hour on Epex Spot SE for five hours from 11 a.m. The average day-ahead price was €71.62.
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