Spanish renewables warns against threats to investment

Renewables lobby APPA warned that the mismatch between an increasing supply of renewable energy and electricity demand, which is struggling to grow in tandem with low wholesale power prices threatens future investment in the sector.

KEY QUOTES

Santiago Gomez, APPA president, told reporters: "We are adding renewables without a proportional rise in electricity demand."

He said that, in terms of pricing, "By 2024 we expect to have about 10% of our hours at zero, or even negative, power prices." April was the lowest month of the entire historical series.

He said that "These figures clearly are insufficient for renewable investments to be profitable, and could put at risk the funding of future projects."

Why it is important

The warning comes as Spain is under pressure to accelerate the rollout renewable energy projects in order to meet its ambitious climate and energy plans. APPA warns that if Spain does not increase storage and the proportion of electricity in the energy mix it has, the chances of falling short of their targets will be increased.

CONTEXT

Europe has experienced a record amount of hours with zero or negative electricity prices in this year. This is due to the rapid expansion of solar energy and the strong production of hydropower.

(source: Reuters)