· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece on Financial Post or enjoy below:
🗞️ Driving the news: Spain’s solar energy market faces an oversupply crisis, pushing electricity prices so low that some solar projects may not be profitable enough to proceed
• According to Aurora Energy Research Ltd, Spain’s clean energy production has flooded the grid, leading to decreased solar capture rates, even though batteries and storage systems aim to absorb excess energy
🔭 The context: Spain, with abundant sunlight, has seen a boom in solar power, much like California, but the oversupply of energy is driving down prices
• While California has developed 11.2 gigawatts of storage to stabilize the market, Spain’s energy storage industry remains smaller, causing concerns that the same price drops could persist
🌍 Why it matters for the planet: The oversupply in renewable energy generation risks stalling the development of new solar projects, slowing progress toward reducing reliance on fossil fuels
• Effective storage solutions will be crucial in balancing supply and demand, ensuring the long-term viability of clean energy
⏭️ What's next: Spain aims to add 12.5 gigawatts of battery and thermal storage by 2030, comparable to California’s current capacity
• However, the country's shift toward storage investment will need to accelerate to mitigate the oversupply challenge
💬 One quote: “The system still faces challenges from oversupply,” Aurora Energy Research noted, warning that storage alone may not fully resolve the issue.
📈 One stat: In Spain, only 3.8% of planned solar projects are paired with storage, compared to 98% in California.
Click for more news covering the latest on renewables
