Electricity prices in Europe are falling – and that is bad

The huge expansion of renewable energy in Europe means that power plants produce more energy than needed, forcing them to pay utilities to siphon it off – efficiently and selling at a negative price. At first glance, this may seem like a good thing for cash-strapped households, but negative prices don’t necessarily lower electricity bills, but they can also create a number of downsides, including disrupting the business case for building more renewable energy sources.

The energy price is largely determined by the “next day” situation…