Flexible demand, while considered a potential tool for balancing energy systems, has faced criticism due to concerns over its effectiveness and fairness. Critics argue that relying on flexible demand may disproportionately affect consumers, especially those with limited access to flexible energy contracts or the ability to adjust consumption patterns. The notion that consumers should change their usage habits in response to price fluctuations or grid demands may also be seen as an unfair burden on households that are not equipped with smart technologies or the resources to manage their energy consumption effectively.

Additionally, there are significant warnings regarding the obstacles facing the growth of renewable energy. While renewables have made great strides in recent years, challenges persist. Bureaucratic hurdles, slow permitting processes, and grid infrastructure limitations are frequently cited as major barriers to the expansion of renewable energy sources. Moreover, public opposition to certain renewable energy projects, such as wind farms, due to concerns over landscape impacts or potential health effects, can further delay progress.

Experts argue that addressing these barriers is essential to achieving the necessary energy transition goals and ensuring the continued growth of renewable energy in a sustainable and equitable manner. Efforts to streamline permitting processes, invest in grid upgrades, and foster public acceptance of clean energy projects are critical to overcoming these challenges and accelerating the renewable energy transition.

“It’s felt in the air,” is a common sentiment on social media about the tension in the energy market, which is affecting the planning and viability of renewable energy investments.

Carlos Martín Graña, Operations Manager at ENERJOIN, warns about the impact of price volatility on the sector: “You can’t expect to have a fixed price when natural resources and international markets are so variable.”

According to the expert, the fluctuation of costs not only complicates profit projections but also represents a considerable barrier to the expansion of clean energy.

In an interview with Energía Estratégica España, he states that for renewables to be truly profitable, price stability is needed, which would allow projects to be “bankable” and attract investors. However, the current market presents a very different reality.

“In the same year, we can see prices fluctuate from 14 euros in April to 92 euros in August. In a single day, the price can vary from zero to 180 euros depending on the availability of sun and wind,” Graña describes, emphasizing that this situation affects both generators and industrial consumers, who are unable to anticipate the energy costs they will face.

From the perspective of energy buyers, the analyst criticizes the concept of “flexible demand” as a solution to supply problems.

In this model, consumers are financially incentivized to reduce their consumption during peak demand periods, a measure he considers risky and impractical for the industry.

“Flexible demand is nothing more than a disguised form of rationing. We are facing the risk of paying companies not to consume energy, which threatens economic stability,” Graña points out.

Instead, he believes that a prosperous economy depends on consistent energy consumption, and reducing consumption during peaks could hinder industrial development and harm GDP.

From the generator’s perspective, the lack of price stability also has a negative effect.

Graña points out that renewable energy projects require careful planning and solid financing, something that is impossible to achieve without reliable price forecasts.

“Without price stability, banks won’t support long-term projects. We need secure revenue projections to convince investors,” he emphasizes.

This lack of financial visibility hinders the installation of new renewable capacity, right at a critical moment when Europe is looking to reduce its dependence on external energy sources.

Challenges to Overcome

Another obstacle the sector faces is the lack of connection points for renewable energy plants. While investments for the construction of new solar and wind farms are ready, grid connections are constantly delayed.

“Without a connection point, all the effort and capital invested are put on hold,” explains Graña, underlining that bureaucracy and delays in infrastructure limit the positive impact these investments could have.

Additionally, Graña warns about the risks of a cold winter in a context of high dependence on imported gas. The demand for gas to compensate for the lack of renewable production on days with low solar radiation or little wind drives prices even higher in an already uncertain market.

“If we have a cold winter and a reduction in gas supplies, prices will spike, affecting the entire energy supply chain and, ultimately, the end consumer,” he states.

This market uncertainty creates a vicious cycle in which both generators and consumers are forced to constantly adjust their strategies, limiting the industry’s growth capacity.

“In the end, both the generator and the consumer need predictability to operate effectively,” concludes Graña, stressing that the energy transition will only be viable if Europe can achieve greater stability in the sector.