(Bloomberg) — A sunny start to March will help push solar power generation in western Europe to the highest ever for this month.
Nations in the region have been adding capacity at a rapid pace in recent years as part of the energy transition. That will help toward meeting green targets, but too much renewable capacity is also a worry for investors as it at times has helped to drive down power prices and returns on projects.
Average solar power output across Germany, France and Great Britain is set to reach 12.4 gigawatts this month, a 20% increase from a year earlier, according to a BloombergNEF forecast.
This month has started well, with sunny conditions boosting output from panels across Europe. In France, solar generation reached a new absolute record of 15.6 gigawatts at noon on Sunday, according to data from grid-operator RTE.
A high-pressure system over France cleared out cloud cover and led to an extended period of sunnier weather in February and early March, said Andrew Pedrini, a meteorologist with Atmospheric G2.
The same high-pressure system also drove down temperatures, which increased the efficiency of solar panels that operate better in cooler weather. The combination is “the perfect sweet spot for solar generation,” Pedrini said.
Production in Germany peaked at more than 40 gigawatts on Monday, a level not seen in early spring before, according to data from Entso-e.
Intermittent solar and wind generation leads to large differences in spot prices throughout the day. High solar production around noon sometimes push rates even below zero, while prices are higher in the morning and evening.
The hourly price for Thursday for the hour from 1 p.m. is €0.02 per megawatt-hour. It then jumps to €165.36 per megawatt-hour at 6 p.m., according to data from Epex Spot SE.
It is not just favorable weather driving the increase, but more capacity overall. Germany broke through 100 gigawatts this year, double the amount of just six years ago, according to the Fraunhofer Institute. France saw a 25% increase to 25.3 gigawatts last year.
–With assistance from Eamon Akil Farhat and Francois de Beaupuy.
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