Negative electricity prices spike as solar supply surges in Netherlands

The number of hours in which electricity prices in the Netherlands dropped below zero increased sharply in 2024, according to a market update released Thursday by national grid operator TenneT. The rise in negative pricing was reportedly driven largely by a daytime oversupply of solar-generated electricity during the summer months.

Dutch consumers with dynamic energy contracts benefitted from the price drops. During periods of negative pricing, they were temporarily paid to consume electricity—such as when running washing machines or charging electric vehicles.

The total number of hours with negative electricity prices rose by 45 percent last year, reaching 458 hours, TenneT reported. In contrast, the number of hours when prices exceeded 200 euros per megawatt hour fell to 98 hours.

The average wholesale electricity price in the Netherlands in 2024 stood at 77 euros per megawatt hour, marking a drop of nearly 20 percent from the year before. This decline was attributed to lower prices for natural gas and coal, along with increased generation from renewable energy sources.

Across northwest Europe, the average wholesale electricity price fell even further, by 26 percent, to 71 euros per megawatt hour.

Despite the surge in solar and wind power, natural gas remained the primary source of electricity production in the Netherlands. Renewable sources accounted for 45 percent of total electricity generation in 2024.

The Dutch electricity sector’s CO2 emissions dropped by 15 percent last year. However, TenneT noted that this was the smallest annual decline in the past three years. “The slowdown can partly be explained by a less rapid phase-out of fossil-based production compared to previous years,” the operator stated.