Last week,
Louise Dalton and I had the pleasure of visiting clients and colleagues in Madrid to talk all things BESS and beyond. A huge thank you to everyone who we met for your hospitality and engaging conversations. The weather wasn't bad either… let's just say it made returning to London a little harder than usual!
Beyond the excellent coffee, food and sunshine, we had insightful debates and discussions on what's happening across European energy markets:
🔋 Spain is buzzing with opportunities: Even with ongoing uncertainty around the capacity market, the appetite for the Spanish market remains strong. In particular, hybridisation of assets is a key focus to renewables investors and standalone BESS is also being actively pursued. This evidences that Spain represents a real area of growth and opportunity for storage developers and investors.
🌍 That momentum extends well beyond Spain: We're seeing similar levels of interest and activity in many other European jurisdictions, including Germany, Italy, Poland and Scandinavia, but other jurisdictions as well. BESS is truly becoming a pan-European sector and we are very excited to be involved in this growth.
⚡Market shocks: There's a lot of uncertainty in terms of the Middle East situation, increasing commodity costs, market interventions such as the Decreto Bollette in Italy and the phase out of Chinese Export VAT rebates, and market changes, including application of grid fees and increasing grid curtailment and connection queues. It remains to be seen how these factors will impact the speed of European storage deployment, but it is clear that this technology is fundamental to achieving the European energy transition.
Thanks again to everyone who made time for us. Looking forward to continuing the conversations – ideally somewhere with similar weather! ☀️
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