Europe’s energy transition faces a critical challenge: balancing the oversupply of renewable generation with a demand that is not growing at the same pace. To address this imbalance, Galp is pursuing a strategy focused on storage, industrial electrification and the integration of advanced technological solutions.

Fernando Cremades shared this vision during the panel “Constructive Innovation: EPCs, Developers and Leading Manufacturers for Renewable Growth in Ibero-America,” held at FES Iberia 2025 in Madrid. The event brought together more than 400 leaders from the energy sector to analyse trends in solar energy, storage and decarbonisation. Organised by Strategic Energy, the forum facilitated high-level debates on how to accelerate the transition in a context of renewable overcapacity, low electricity prices and regulatory bottlenecks.

In this setting, Cremades explained how the company decided to anticipate these challenges by integrating storage into all its projects. “Two years ago, we saw that there would be an excess of solar power, prices would go to zero, and thanks to that, we got ahead,” Cremades states.

Galp set up an industrial PPA team three years ago and, currently, all its projects include battery storage. “We have ensured that our entire pipeline is covered with batteries. This will allow us to build everything in our development pipeline without relying on a saturated electricity market,” the executive details.

Regulatory bottlenecks: a brake on the transition

One of the main obstacles to accelerating the transition is Spain’s administrative complexity. “We face 17 different ways of interpreting permitting procedures across the autonomous communities and more than 8,000 municipal interpretations of construction permits,” Cremades highlights.

This regulatory fragmentation delays the execution of projects, both in solar and storage. “If we have a national industrial ambition, we need to simplify the rules and unify the criteria. The countries that understand this are the ones moving forward,” Galp’s executive stresses.

Furthermore, the industry faces additional hurdles with storage systems. “Batteries require specific certifications and recycling records that add further complexity,” Cremades warns. This marks a shift from traditional photovoltaic projects, where supply chains are more standardised.

The urgency to increase electricity demand

Another major challenge is the lack of demand to absorb the new renewable capacity. “We are living in a moment where we are paid to consume energy. Zero prices mean zero investment, zero jobs, zero development and zero future,” Cremades cautions.

To avoid this situation, Galp proposes speeding up industrial electrification and promoting new uses for clean energy. “There are many industries that can decarbonise, from producing emissions-free water to renewable ammonia,” he highlights. The company is already working on such processes, replacing natural gas with green electricity.

A green reindustrialisation: a historic opportunity

The current context of low prices and excess generation is, according to Galp, an opportunity to reindustrialise Europe based on clean and competitive energy. “We have been losing industry for three decades. Hopefully, we will seize this opportunity and turn things around,” says Cremades.

The key will be combining storage, electrification and technology. “We are managing plants with thousands of solar trackers and bolts. AI can predict failures and deploy drones to detect them. This is operational efficiency and cost reduction,” explains Galp’s Global Head of Growth.

With batteries, long-term industrial agreements and decarbonised processes, Galp positions itself as a key player to lead the next growth stage of renewables in Spain and Portugal. “We have done our homework. Now we need regulation and demand to catch up,” Cremades concludes.

Watch the full panel on Future Energy Summit’s YouTube channel: