The mismatch between the growing supply of renewable energy and a demand for electricity that struggles to grow, coupled with depressed wholesale electricity prices, threatens future investments in the sector, the association of renewable energy companies Appa warned on Friday.
Key quotes
“We are facing a mismatch between supply and demand. We continue adding renewable capacity without demand increasing proportionally”Appa president Santiago Gómez told the press.
Regarding prices, he said: “At the end of 2024, we plan to close with 10% of hours at zero or even negative prices”. And he added that in April the lowest price in the entire historical series was recorded.
“These figures are clearly insufficient for renewable investments to be profitable, which could compromise the financing of future projects”, said.
Why is it important?
The warning comes at a time when Spain needs to accelerate the deployment of renewable projects to meet the ambitious goals of its climate and energy plan. If storage is not promoted and the weight of electricity in the energy mix is not increased, the risk of not achieving the objectives increases, Appa warned.
Context
Europe in general has recorded a record number of hours with zero or even negative electricity prices this year, thanks to the massive expansion of solar energy and strong hydroelectric production.