Day-ahead power prices across continental Europe tumbled to multi-year lows this week as a record stretch of solar generation, mild temperatures, and high wind output overwhelmed midday demand. German baseload prices traded below €20 per MWh on several afternoons, with negative prints recorded in Spain, the Netherlands, and parts of the Nordic system.

Solar output on the EU grid set a new spring peak above 95 GW, according to grid operator data. Combined with strong hydro reservoirs in Iberia and the Alps, renewables supplied more than 70% of EU electricity demand on at least three days in the past week.

The collapse in midday prices is intensifying pressure on thermal generators and squeezing economics for gas-fired plants in particular. Several operators have curtailed daytime dispatch, while battery storage assets are capturing widening intraday spreads that are increasingly the most attractive trade on the European power curve.

Industry analysts say the trend underscores the urgency of accelerating flexibility investments — storage, demand response, and cross-border interconnection — if Europe is to absorb the next wave of renewable capacity without further depressing wholesale prices.