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In Europe, the adoption of renewable energy sources such as solar and wind has advanced rapidly, leading to excess electricity generation—particularly during daytime hours—where generation exceeds demand. According to Bloomberg’s estimates, up to approximately 40 TWh of surplus electricity could be generated annually across Europe, equivalent to the entire annual electricity consumption of London. However, not all of this electricity is effectively utilized. Portions that cannot be absorbed by the grid due to limitations in energy storage capacity and transmission infrastructure are curtailed and effectively lost. In Germany and France, oversupply caused by renewable generation has even led to temporary negative electricity prices, impacting market dynamics. Experts point out that while the deployment of renewable energy is progressing smoothly, the grid’s flexibility, transmission infrastructure, and storage capacity have not kept pace. This situation does not reflect a failure of renewable energy policy, but rather highlights that operational systems have not yet fully adapted to the rapid scale-up.

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