The continued increase in Spain's renewable power capacity, coupled with a slower growth in electricity demand and falling wholesale prices, poses a significant risk to future investments in the sector, the Spanish renewables association APPA warned on Friday.
“We continue to add renewables capacity without a proportional increase in power demand,” APPA President Santiago Gomez told reporters. He noted that by the end of 2024, roughly 10% of hours will see zero or even negative power prices, with April recording the lowest prices in the historical series. According to Gomez, “These figures are clearly insufficient to make renewable investments profitable, which could jeopardise the financing of future projects.”
This warning comes at a critical moment for Spain, which needs to accelerate renewable project rollouts to meet its ambitious climate and energy targets. APPA cautioned that without a ramp-up in storage capacity and an increase in electricity's share in the energy mix, Spain may struggle to reach its goals.
The situation reflects a broader European trend, where increased solar and hydro production has led to a record number of hours with zero or negative prices, emphasizing the need for policy adjustments and demand-side solutions to sustain renewable investment momentum.
See Also
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