The solar sector has experienced remarkable growth in recent years, yet it faces a critical challenge: price cannibalisation in markets like Spain, where an oversupply of solar energy has caused a steep decline in captured electricity prices.

Enrique De La Cruz, Commercial Director for Solar and Storage at Gamesa Electric, warned that this situation could hinder the development of new solar plants unless energy storage expands significantly.

Speaking at the Storage and Renewable Leadership Forum, organised by Strategic Energy Corp, De La Cruz highlighted that 2024 was a record-breaking year for photovoltaics, with 6.7 GW of new capacity in Spain, 65 GW across Europe, and up to 600 GW globally, depending on the source. “2024 was an extraordinary year for the solar industry, but future growth will depend on the integration of storage to manage intermittency and improve profitability,” he stated.

The first event of the year by Strategic Energy Corp was a two-part virtual session, co-organised with Mobility Portal Europe and Strategic Energy Europe. Strategic Energy Corp partnered with Future Energy Summit (FES) to host this event, as FES is the leading platform for renewable energy discussions in Spanish-speaking countries.

Notably, on 24 June, the third edition of FES Iberia 2025 will take place at Colegio Caminos (Auditorio Betancourt, C. de Almagro, 42, Chamberí) in Madrid. (Relive the previous edition here). The meeting will feature companies such as Iberdrola, Nextracker, Engie, Grenergy, Statkraft, Acciona Energía, Red Eléctrica, and EDP Renovables, alongside key representatives from Spain’s regional governments and Latin America. Key discussion topics will include solar and wind energy, storage, green hydrogen, distributed generation, PPAs, auctions, and new projects.

Price Cannibalisation: A Threat to the Spanish Solar Market

One of the most pressing topics at the forum was price cannibalisation in Spain’s electricity market. In 2024, captured prices for solar reached historic lows, falling to just 30% of the average daily price, according to Red Eléctrica Española. This means that solar plants are selling their energy at significantly lower prices, making it increasingly difficult to develop new projects.

De La Cruz warned that without concrete solutions, the sector’s growth could stagnate. “If this trend is not reversed, it will be very difficult to maintain the current pace of solar expansion in Spain. The integration of batteries and storage systems could play a crucial role in stabilising prices and optimising the use of generated energy,” he emphasised.

Storage: The Key to Revitalising the Sector

Energy storage is not only essential for managing solar intermittency but also for mitigating price volatility. Forecasts suggest that the European storage market could surpass 8 GW annually by 2030, with Spain as one of the countries with the highest growth potential.

Currently, energy storage in Spain remains highly limited, with just 50 to 100 MWh installed in the utility-scale segment, despite 2 GW currently in the pipeline. To meet the PNIEC (National Integrated Energy and Climate Plan) target of 22 GW of storage by 2030, the sector must install 1.5 GW annually.

De La Cruz stressed the need for clear incentives and regulatory frameworks to accelerate this growth. “Spain’s capacity market must be structured as a matter of urgency. Without clear rules, storage projects will remain in their infancy, and we won’t see large-scale deployment in the short term,” he noted.

Gamesa Electric and ABB: A Strategic Merger for Expansion

Another key industry development is the recent acquisition of Gamesa Electric by ABB, announced in December 2024. Although the deal is still awaiting regulatory approval, the integration of Gamesa Electric into ABB could create significant synergies in power electronics.

“ABB has a strong presence in hydroelectric power, and the addition of Gamesa Electric strengthens its strategy in storage and photovoltaics. This partnership will allow us to enhance cost competitiveness and expand in key markets,” explained De La Cruz.

Despite the rapid growth of photovoltaics in Europe, many European power electronics companies, including Gamesa Electric, are focusing on international markets. “Our 2025 growth will be driven primarily by markets like the United States and Australia, where competition is stronger and storage conditions are more favourable,” he said.

Australia, in particular, has become a global benchmark for large-scale storage, with hybrid projects, Gridforming technologies, and Blackstart solutions operating at full scale. According to De La Cruz, Europe should learn from these markets to accelerate its own storage integration.

The Future of Storage and the Energy Transition

Expectations for storage in 2025 and beyond are high, but the sector faces regulatory and cost challenges. Reducing CAPEX, establishing capacity markets, and implementing new technologies will be critical to driving growth.

“Storage is the key to ensuring the stability of the electrical system and the success of the energy transition. At Gamesa Electric, we are ready to provide innovative solutions that unlock the full potential of photovoltaics,” De La Cruz concluded.

The Storage and Renewable Leadership Forum made it clear that storage will be the decisive factor for the future of photovoltaics in Spain and Europe. With the right regulatory framework and the backing of industry leaders like Gamesa Electric, the sector could overcome its current barriers and achieve sustained growth in the coming years.

The next major milestone will be the third edition of FES Iberia 2025 on 24 June in Madrid, where storage and renewables integration will once again take centre stage.