Negative electricity prices reach new highs on the Iberian Peninsula

In Spain and Portugal, this trend reached a new peak in the first quarter of 2026. Spain recorded 397 hours of negative electricity prices between January and March, compared to just 48 hours in the same period of 2025. Portugal reached 222 hours, according to pv magazine. The main driver behind this development is a strong photovoltaic generation combined with relatively low demand. This effect is most visible during midday hours, when solar production peaks.

A concrete example illustrates the situation: On February 21, electricity prices dropped to –€58.60/MWh. At that time, solar output reached 15.6 GW, while demand stood at 24.6 GW. The result was a clear surplus of electricity in the system. The data shows that even in winter months, solar generation is already reaching significant levels due to ongoing capacity expansion. With longer daylight hours and additional installations expected throughout 2026, further increases in negative price events are likely. At the same time, price fluctuations within a single day are becoming more pronounced: while surplus generation leads to very low or negative prices around midday, prices tend to rise again in the afternoon when solar output declines and conventional generation becomes more relevant.

Shifting consumption becomes essential

These developments are changing the role of electricity consumers. Instead of consuming energy independently of market conditions, there is increasing value in aligning demand with periods of high renewable generation. In practical terms, this means shifting energy-intensive applications into time windows when electricity is abundantly available, especially during peak solar production.

Using PV electricity for heat is one of the most effective ways to achieve this. Domestic hot water systems, in particular offer high flexibility and can absorb significant amounts of energy without compromising comfort.