2025 Iberia Blackout Report [pdf]

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But the quote literally spells out it was market forces, not some instability in solar generation?

Your other comment probably got flagged because it started with a huge straw man and had multiple unwarranted jabs in it.

Temporary negative prices have been caused by the renewable generation which exceeded the grid demand at the time, which then evolved into the nasty feedback loop caused by the reaction of renewable generation to those conditions. You simply do not get such situation with traditional generation, it's the direct consequence of the intermittent nature of renewables and its high ratio in the total generation.

Also, have you read after the market part? Please watch this video https://www.youtube.com/watch?v=7G4ipM2qjfw if the last quote is gibberish to you. It discusses somewhat different issues, but the point still stands.

So an incredibly cheap source of supply exceeded the demand, and the market rules and some trips caused cascading failures.

Why is the problem the cheap source of supply rather than the market rules and incentives that made everything act the way it did?

Your comment suggests move back to good ol' expensive fossil generation instead of looking at how to bring the market rules up to date with evolving technologies.

Because the only reason that solar is still generating power at negative prices is because they are getting subsidies to do it. Otherwise they would disconnect themselves apart from in extreme scenarios (control system down or something), and I bet when you are paying many tens of thousands of euro an hour you'd get someone to fix/manually turn it off sharpish.

Looks like there are a multitude of schemes of various vintages in Spain, which tl;dr basically give you a guaranteed price per MWh you generate. So imagine you get a 100eur/MWh subsidy for a (legacy) solar plant. The market price is €-20/MWh. You will still continue to produce power until the price reaches -100MW/h. Even worse are some contracts for difference (poorly thought through) which give you a guaranteed price regardless of what the market is at. So even if the price was -1,000eur/MWh the government or grid operator would still give you your €50/MWh (and the subsidy would be 1,050/MWh!).

The problem is if you reform this (and it is happening worldwide) solar is much, much less appealing. Because suddenly your solar plant which was getting (say) a guaranteed 70/MWh all year round suddenly does not make money for 6 months of the year at least at peak sun hours.

On top of all this, you have a lot of domestic solar in places like Spain. The grid operator _cannot_ control these assets in nearly all circumstances. They will continue to dump power into the grid regardless of the market price. This again will change but it requires an awful lot of work to retrofit invertors with remote control capability OR a lot of public backlash for charging end customers who bought solar in "good faith" now getting hit with peak time negative prices (so they change their behaviour).

I think my core message would be _any_ negative power prices is a sign of market failure. Acceptable in rare extreme occurrences, but the fact most of europe has highly negative prices very frequently is telling you the grid and market design is not able to handle what is going on.

> Because the only reason that solar is still generating power at negative prices is because they are getting subsidies to do it.

This massively simplifies reality.

E.g. in Finland where I live we also have issues with negative power prices. A few years ago we had some really low prices. It turns out, a fair bit of wind power producers never opted to add to their windmills any remote shutdown possibility, nor did they have the ability to monitor prices and react to them automatically. I.e. they just kept generating no matter the price, and had offers in at the network level at the lowest permissable price.

Since then, when they lost a non-insignifcant amount of money by running at negative prices, they've started installing control electronics in windmills and building IT systems and prediction algorithms to be able to react to this.

In the EU it is not as simple as "turning off when the prices are negative" since producers offer a certain capacity to the grid in an auction system the day before. You have to predict the weather + overall demand and set your offer accordingly.