Europe faces an unusual problem: ultra-cheap energy
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.
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.
As solar panels and wind farms take over Europe, the question facing the continent’s policymakers is what to do with all the power they produce.
Sending energy to places without surpluses would require a better connected grid.
The problem is that grid extensions take time and meet local opposition.
On June 18th Sweden cancelled the Hansa PowerBridge, a 700-megawatt connection to Germany, over fears it would raise electricity prices for domestic consumers.
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