There is a new green energy problem in Europe: too much sun

In April in the countries The EU has soared the production of electricity from solar power plants. However, this did not bring joy. Too large volumes overload power systems and make green energy projects unprofitable.

According to the Institute of Solar Systems. According to Fraunhofer, in April, the share of solar power plants in electricity production in Germany rose to 24.8%. Whereas the average for this year is 12%, and in the hottest months of summer it does not exceed 28%.

The situation is similar in other EU countries. The solar energy season is getting longer and more intense, which threatens to disrupt the market and overload power systems with a parallel drop in electricity prices.

In most EU countries, wholesale electricity prices this April are higher than a year ago. For example, in Germany — 78 euros and 62 euros per MWh, respectively. However, if the trend continues, electricity from the sun will constantly fill the market, knocking prices below zero, and will eat up the income of green generation, scaring off investors, Bloomberg believes.

The problem of green energy is its instability and the lack of technology of powerful storage facilities where electricity could be stored. This situation is well known in the EU, where they are already beginning to doubt their plans for the development of solar generation.

"After several years of stellar growth, the EU solar energy sector has faced a significant slowdown in deployment — from 53 percent growth in 2023 to 4 percent in 2024," says the "Forecast of the EU Solar Energy Market for 2024-2028" from SolarPower Europe.

Analysts note that the slowdown is not surprising.

"After the boom during the gas crisis, the urgency of switching to solar energy for citizens has weakened, as their bills are normalizing. Developers face difficulties for various reasons. The energy system is not keeping pace with the growth curve of solar energy, and the construction of cost—effective solar power plants is becoming increasingly difficult," the document says.

SolarPower Europe noted that they expect low annual growth rates of 3-7% in the period from 2025 to 2028.

"This would be enough to The EU has reached its target of 750 GW by 2030. However, Europe may not achieve this goal at all — by 100 GW," the analysts write.