Challenges Hamstringing the Energy Transition in Europe
Europe’s effort to shift away from fossil fuels is facing a problem that would once have seemed unlikely: electricity is sometimes becoming so plentiful that producers have to pay to sell it. During the first three months of 2026, electricity traded below zero for 1,223 hours across European Union day-ahead markets, according to the International Energy Agency. The figures point to a weakness on the demand side rather than an end to Europe’s need for new clean power. Only about 24% of energy use across the European economy was electrified in 2024, compared with 34% in China. Electricity therefore still…
