Alpiq, a Swiss electricity producer, is strengthening its position in the European market with a strategic focus on developing flexible and Battery Energy Storage System (BESS) assets. The company, known for its solid base of hydropower and thermal assets, has emphasized the importance of flexibility in ensuring energy supply stability in an ever-changing environment.

‘We specialize in providing flexibility to European energy markets. This expertise has allowed us to become one of Europe’s most relevant players in the operation and optimization of flexible assets, both within our portfolio and for our clients,’ states Paula del Castillo Cabanas, Country Manager of Alpiq Spain, in an interview with Strategic Energy Europe.

BESS storage plays a key role in the sector, complementing the rapid expansion of wind and solar energy and facilitating the energy transition across various markets.

In this context, the company acquired a 100 MW/200 MWh project in northern France and is constructing another project in Finland with a capacity of 30 MW/36 MWh, expected to be operational in the second half of 2025.

Meanwhile, the Spanish storage market is shaped by recent regulatory initiatives, such as the provision of priority dispatch for non-manageable renewables hybridized with up to four-hour batteries, along with the anticipated capacity market. ‘Regulations will be critical to achieving the PNIEC objectives and reaching carbon neutrality by 2050,’ adds Castillo Cabanas.

Alpiq’s Expertise in Managing Flexible Assets

With over a century of experience, Alpiq has been a key player in operating and optimizing flexible assets across Europe. Its expertise includes managing hydropower storage, pumped-storage plants, and highly flexible gas plants.

‘We are convinced that we can play a key role by investing in additional flexibility (existing and new) in our core markets, including Spain. This way, we will significantly contribute to the energy transition,’ asserts the executive.

‘As integrators, we invest in new technologies to integrate more renewable solar and wind sources into a secure and stable energy system,’ she adds.

It is worth noting that the company has an international presence and operations across Europe in key markets such as France, Germany, and Italy, with over 25 years of experience in Spain. Additionally, it operates in Hungary, the Nordic countries, and the Baltic states.

The Role of PPAs in the Energy Transition

The Power Purchase Agreement (PPA) market has evolved significantly in recent years, driven by the transition to renewable energy. The structural shift in the energy system from flexible to non-flexible generation has increased the demand for price hedging and risk mitigation products.

With innovative solutions and a strong presence across Europe, Alpiq supports renewable producers and large consumers in navigating this changing landscape, according to Castillo Cabanas.

In the coming years, the portfolio of new renewable projects is expected to continue growing, driven by electrification and increasing electricity demand. Spain’s current target is 62 GW of wind capacity and 76 GW of photovoltaic capacity by 2030.

‘The growth of renewable generation has led to increased cannibalization among producers and a decrease in the capture rates of renewable assets. This has shifted the risk distribution in traditional PPAs, prompting renewable producers to seek offtakers like Alpiq, who can take on risks and offer more sophisticated structures,’ adds the company representative.

Progress in 2024 and Future Goals

The year 2024 has been a positive one for Alpiq, marked by progress in safety and regulation. ‘It has been another year without accidents at our plants, reflecting our commitment to safety and quality,’ the company emphasizes. In the Spanish market, regulatory initiatives have prioritized flexibility and storage, aligning with decarbonization objectives.

Looking ahead, Alpiq aims to enhance supply security and consolidate an active role in supporting Spain’s energy transition by developing flexible assets and structuring products needed to face ‘this challenging market.’

‘We believe in our people and our corporate culture, which fosters collaboration and innovation to create a different kind of energy,’ concludes the executive.”