Negative pricing reshapes solar finance as investors turn to storage for flexibility in Europe

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From ESS News

The Aurora Energy Finance 2025 conference, held in Paris on October 8, brought together renewable energy financiers to discuss investment strategies in an era of increasing price volatility and negative pricing. As renewables take a dominant share of the energy mix, these market shifts are reshaping established business models and forcing lenders, developers and policymakers to re-evaluate how they assess and distribute risk.

Amid this uncertainty, new opportunities are emerging for those willing to adapt. The focus is moving toward flexible assets, evolving market signals and early-stage models for storage that can support long-term resilience.

Adapting to negative prices

A key challenge lies in adapting project models to the growing frequency of negative prices. Lisa McDermott, Managing Director for Project and Infrastructure Finance at Dutch commercial bank ABN Amro, noted: “Assets that are now operating during negative hours were financed historically, when lenders were not yet as familiar with negative pricing as they are today.”

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