Overview

• For six hours on May 1, 2025, electricity prices in Italy dropped to zero due to low demand and high renewable energy production, as confirmed by GME data.
• The event was driven by Italy's installed renewable capacity of 13 GW wind and 38 GW solar, which exceeded the holiday's reduced peak demand of 22 GW.
• Renewable energy producers will still receive subsidies funded through consumer bills, despite the zero market price.
• Analysts warn that oversupply events highlight the need for energy storage systems and grid upgrades to ensure the stability of the energy transition.
• Electricity prices are expected to rebound later in the day, peaking at €141/MWh around 9 PM, underlining the volatility of Italy's energy market.