Investing
Spanish renewables industry warns of threats to investment
Published by Jessica Weisman-Pitts
Posted on October 25, 2024
2 min readLast updated: January 29, 2026
Global Banking & Finance Review®
Company
Published by Jessica Weisman-Pitts
Posted on October 25, 2024
2 min readLast updated: January 29, 2026
MADRID (Reuters) – The mismatch between increasing supply of renewable power and electricity demand that is struggling to grow, coupled with depressed wholesale power prices, threatens future
MADRID (Reuters) – The mismatch between increasing supply of renewable power and electricity demand that is struggling to grow, coupled with depressed wholesale power prices, threatens future investments in the sector, renewables lobby APPA warned on Friday.
KEY QUOTES
We continue to add renewables capacity without a proportional increase in power demand,” APPA President Santiago Gomez told reporters.
As for pricing, he said, “By the end of 2024, we expect about 10% of hours at zero or even negative power prices,” adding that April saw the lowest price in the whole historical series.
These figures are clearly insufficient to make renewable investments profitable, which could jeopardise the financing of future projects,” he said.
WHY IT IS IMPORTANT
The warning comes at a time when Spain needs to speed up the rollout of renewables projects to meet ambitious targets in its climate and energy plan. Failing to boost storage and increase the weight of electricity in its energy mix, increases the risk that it will fall short of its targets, APPA warned.
CONTEXT
Europe in general has seen a record number of hours at zero or even negative power prices this year, on the back of the massive expansion of solar power and strong hydro power production.
(Reporting by Pietro Lombardi; Editing by Clarence Fernandez)
Renewable energy is energy derived from natural processes that are replenished constantly, such as solar, wind, and hydro power. It is considered more sustainable than fossil fuels.
Wholesale power prices refer to the cost at which electricity is sold in bulk to retailers or large consumers. These prices can fluctuate based on supply and demand dynamics in the energy market.
Energy demand is the total amount of energy required by consumers at any given time. It can be influenced by various factors, including population growth, economic activity, and seasonal changes.
Investment in renewable energy is crucial for developing new technologies, expanding capacity, and improving infrastructure. It helps drive the transition to cleaner energy sources and supports sustainability goals.
Energy storage refers to technologies that capture and store energy for use at a later time. This is essential for balancing supply and demand, especially with intermittent renewable energy sources.
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