Spain logs 397 hours of negative prices in Q1 2026

Spain recorded 397 negative-price hours in Q1 2026, the highest quarterly total reported so far, per pv magazine. That is roughly one hour in every five across the 13-week period. The Iberian bidding zone is bearing the brunt of a structural mismatch: solar capacity has scaled faster than the short-term demand sinks (storage, electrolysers, industrial loads) needed to absorb midday generation surpluses.

Merchant PV projects are the most exposed. Without a floor from a CfD or long-term PPA, each negative-price hour is a direct revenue loss rather than a zero. Capture prices for solar in Spain were already under pressure through 2025; Q1 2026 data suggests the trend has not reversed.

Solar industry body UNEF argues the imbalance is temporary. New electricity-intensive demand is forecast to arrive within three to five years: data centres, green hydrogen, EV charging at scale. That framing may reassure long-duration investors but does little for projects with near-term debt service requirements or merchant exposure in the current forward curve.