New IRENA report confirms cost-competitiveness of renewables; warns of mounting grid integration and financing challenges notably in emerging and capital-constrained markets

New IRENA report confirms cost-competitiveness of renewables; warns of mounting grid integration and financing challenges notably in emerging and capital-constrained markets
Current administrative milestones remain in place, creating a bottleneck in the integration of renewables into the grid. Without a demand boost, the risk of imbalances and zero and negative price hours in the system will increase. An opportunity to promote collective self-consumption and system flexibility is being missed. Investments in storage, self-consumption and electrical grids remain in limbo. APPA Renovables warns of the collapse that will result from the inadequacy of the milestones, as well as the impact of not boosting storage and demand.
Royal Decree 7/2025 was essential to boost storage deployment and strengthen shared self-consumption. The rejection of the reform has no technical or ideological basis, but rather responds more to political tactics and the constant need to win the narrative.
Tomorrow, Congress will vote on the anti-blackout decree aimed at strengthening Spain’s electricity system. The regulation enjoys broad support from the renewable energy sector, but its approval hinges on a delicate political balance.
During FES Iberia 2025, Galp’s Global Head of Growth, Fernando Cremades, outlined the company’s strategy to lead Spain’s energy transition. “If we do not accelerate demand, we risk halting the entire sector,” warns the executive.
In the joint letter, they urge MPs to support RDL 7/2025, highlighting its technical reforms to stabilise the grid, attract investment, and strengthen the legal certainty of projects in Spain.
MITECO opens up 3,681 MW across eight key grid nodes. The mechanism prioritises industrial decarbonisation, economic investment, and swift project execution.
Yesterday in Brussels, the European Commission presented its proposal for the next Multiannual Financial Framework (MFF – the EU’s long-term budget for 2028-2034). Thanks to new own resources, this budget would reach close to €2 trillion.
At FES Iberia 2025, Ramón Cidón, Development Director at IGNIS, explained how the company is adapting its business model to a context of low prices and grid saturation. “We are shifting from volume to value, prioritising the economic return of every megawatt we generate,” the executive stated.
Renewables supplied 12,461 GWh in June, spearheaded by solar PV at 26% of the generation mix. APPA’s report also highlights a 10.5% increase in electricity demand and growing market price volatility.
Despite a 26% year-on-year contraction in contracted volumes, solar power remains a key player in Europe’s PPA market. Energy storage systems are expanding rapidly, while utilities gain ground over corporate buyers.
The reform of the ROTU, published on 8 July, suspends permits for battery projects >3 MW on non-developable land. The industry warns of multi-million-euro investment losses and a regulation lacking technical basis.
Despite monthly volatility, solar PV maintained its leadership and opportunities are emerging with hybrid contracts towards the end of the year. Miguel Marroquín warns that “the market urgently needs redesigning”.
At FES Iberia 2025, Pedro González, Managing Director of AEGE, highlighted the loss of industrial competitiveness driven by soaring electricity costs. “This will be the fourth most expensive year since 1998,” he warns, calling for regulatory changes to facilitate access to physical PPAs and decouple renewable energy prices from the wholesale market.
Investments of €3.2 billion are planned over ten years to strengthen the efficiency, resilience, and sustainability of the regional electricity system; with Efficient Territorial Planning, Terna promotes integrated and shared planning of energy infrastructure.
In an exclusive audiovisual interview with Strategic Energy during FES Iberia 2025, Laura Nuez Santana, Head of Production and Business Development at IPROCEL, outlines how the company is diversifying its services to lead the global energy transition. The Canary Islands-based firm plans to expand into Brazil, Ecuador and Panama, and already boasts over 50 GW of installed capacity across 40 countries.
At FES Iberia 2025, Carlos Píñar Celestino, Managing Director of Elmya, addressed the challenges facing the EPC sector in Ibero-America and Europe. He pointed out that regulatory unpredictability and abrupt policy changes directly impact costs and sector efficiency.
Alejandro Fuster, Technical Director of Spain DC, warns at FES Iberia 2025 that the sector’s power consumption will skyrocket from 200 MW in 2024 to 730 MW by 2026. He urges regulatory changes to prevent losing key investments in data centers.
The units feature hybrid cooling, high operational efficiency and scalable architecture, optimised to reduce peak demand and stabilise intensive energy consumption.
The company manages a 700 MW pipeline of stand-alone storage projects and is preparing to begin construction of its first hybrid plants. “It’s only a matter of time before we start installation,” says Sergio Arbeláez, Managing Director Europe & Latam at Matrix Renewables, during his participation at FES Iberia 2025.
The Director of Communication, Institutional Relations, Regulation and Corporate Strategy at ENGIE Spain warns that unless demand is reactivated and regulatory bottlenecks are cleared, the sector will face a paralysis that threatens investment and jobs. “We have a market that recorded €1.6/MWh – that’s unsustainable,” he stresses.
New IRENA report confirms cost-competitiveness of renewables; warns of mounting grid integration and financing challenges notably in emerging and capital-constrained markets
Current administrative milestones remain in place, creating a bottleneck in the integration of renewables into the grid. Without a demand boost, the risk of imbalances and zero and negative price hours in the system will increase. An opportunity to promote collective self-consumption and system flexibility is being missed. Investments in storage, self-consumption and electrical grids remain in limbo. APPA Renovables warns of the collapse that will result from the inadequacy of the milestones, as well as the impact of not boosting storage and demand.
Royal Decree 7/2025 was essential to boost storage deployment and strengthen shared self-consumption. The rejection of the reform has no technical or ideological basis, but rather responds more to political tactics and the constant need to win the narrative.
Tomorrow, Congress will vote on the anti-blackout decree aimed at strengthening Spain’s electricity system. The regulation enjoys broad support from the renewable energy sector, but its approval hinges on a delicate political balance.
During FES Iberia 2025, Galp’s Global Head of Growth, Fernando Cremades, outlined the company’s strategy to lead Spain’s energy transition. “If we do not accelerate demand, we risk halting the entire sector,” warns the executive.
In the joint letter, they urge MPs to support RDL 7/2025, highlighting its technical reforms to stabilise the grid, attract investment, and strengthen the legal certainty of projects in Spain.
MITECO opens up 3,681 MW across eight key grid nodes. The mechanism prioritises industrial decarbonisation, economic investment, and swift project execution.
Yesterday in Brussels, the European Commission presented its proposal for the next Multiannual Financial Framework (MFF – the EU’s long-term budget for 2028-2034). Thanks to new own resources, this budget would reach close to €2 trillion.
At FES Iberia 2025, Ramón Cidón, Development Director at IGNIS, explained how the company is adapting its business model to a context of low prices and grid saturation. “We are shifting from volume to value, prioritising the economic return of every megawatt we generate,” the executive stated.
Renewables supplied 12,461 GWh in June, spearheaded by solar PV at 26% of the generation mix. APPA’s report also highlights a 10.5% increase in electricity demand and growing market price volatility.
Despite a 26% year-on-year contraction in contracted volumes, solar power remains a key player in Europe’s PPA market. Energy storage systems are expanding rapidly, while utilities gain ground over corporate buyers.
The reform of the ROTU, published on 8 July, suspends permits for battery projects >3 MW on non-developable land. The industry warns of multi-million-euro investment losses and a regulation lacking technical basis.
Despite monthly volatility, solar PV maintained its leadership and opportunities are emerging with hybrid contracts towards the end of the year. Miguel Marroquín warns that “the market urgently needs redesigning”.
At FES Iberia 2025, Pedro González, Managing Director of AEGE, highlighted the loss of industrial competitiveness driven by soaring electricity costs. “This will be the fourth most expensive year since 1998,” he warns, calling for regulatory changes to facilitate access to physical PPAs and decouple renewable energy prices from the wholesale market.
Investments of €3.2 billion are planned over ten years to strengthen the efficiency, resilience, and sustainability of the regional electricity system; with Efficient Territorial Planning, Terna promotes integrated and shared planning of energy infrastructure.
In an exclusive audiovisual interview with Strategic Energy during FES Iberia 2025, Laura Nuez Santana, Head of Production and Business Development at IPROCEL, outlines how the company is diversifying its services to lead the global energy transition. The Canary Islands-based firm plans to expand into Brazil, Ecuador and Panama, and already boasts over 50 GW of installed capacity across 40 countries.
At FES Iberia 2025, Carlos Píñar Celestino, Managing Director of Elmya, addressed the challenges facing the EPC sector in Ibero-America and Europe. He pointed out that regulatory unpredictability and abrupt policy changes directly impact costs and sector efficiency.
Alejandro Fuster, Technical Director of Spain DC, warns at FES Iberia 2025 that the sector’s power consumption will skyrocket from 200 MW in 2024 to 730 MW by 2026. He urges regulatory changes to prevent losing key investments in data centers.
The units feature hybrid cooling, high operational efficiency and scalable architecture, optimised to reduce peak demand and stabilise intensive energy consumption.
The company manages a 700 MW pipeline of stand-alone storage projects and is preparing to begin construction of its first hybrid plants. “It’s only a matter of time before we start installation,” says Sergio Arbeláez, Managing Director Europe & Latam at Matrix Renewables, during his participation at FES Iberia 2025.
The Director of Communication, Institutional Relations, Regulation and Corporate Strategy at ENGIE Spain warns that unless demand is reactivated and regulatory bottlenecks are cleared, the sector will face a paralysis that threatens investment and jobs. “We have a market that recorded €1.6/MWh – that’s unsustainable,” he stresses.
Select the sector you
want to know more about
Castilla-La Mancha generates more than 25% of all its electricity from solar photovoltaic energy and is one of the regions with the greatest room for growth in biomass and energy storage. “The energy transition is not only an environmental opportunity, but also a lever for development and territorial cohesion,” stressed Marina Serrano, president of aelēc, during the conference “Rural Environment: Energy Transition and Economic Integration” held in Toledo.
Castilla-La Mancha genera más del 25% de toda su electricidad a partir de solar fotovoltaica y es una de las comunidades con mayor margen para crecer en biomasa y almacenamiento energético. “La transición energética no solo es una oportunidad ambiental, sino también una palanca de desarrollo y cohesión territorial.”, ha destacado la presidenta de aelēc, Marina Serrano, durante la jornada ‘Entorno rural: Transición energética y vertebración económica’ que se ha celebrado en Toledo.
With more than 1.1 GW installed in Spain and 120 MW in Italy, Negratín Global Services projects 2–3 years of contractual visibility and is preparing its expansion as an IPP, with a strong focus on hybrid projects with batteries.