Europe faces an unusual problem: ultra-cheap energy
The continent is failing to adapt to a renewables boom
Owing to the rapid spread of solar power, Spanish energy is increasingly cheap. Between 11am and 7pm, the sunniest hours in a sunny country, prices often loiter near zero on wholesale markets (see chart). Even in Germany, which by no reasonable definition is a sunny country, but which has plenty of wind, wholesale prices were negative in 301 of the 8,760 tradable hours last year.
This article appeared in the Finance & economics section of the print edition under the headline “Gridlock”
Finance & economics June 22nd 2024
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