Markets & Investments

Europe’s energy independence will require massive investments in new solar and storage capacities. Unlocking these investments demands tailoring a fit-for-purpose regulatory framework preserving capture prices and the solar PV business case.  

The design of the EU electricity market must provide the right signals to encourage flexibility, both from generation and demand of electricity. Long-term markets, such as capacity mechanisms or forward markets, must be developed to allow for investments in solar PV and battery energy storage systems (BESS).  

Public support has been instrumental in deploying solar PV and making it the cheapest source of electricity. It will continue playing a key role in the coming years to meet the ambitious solar targets set out by the European Commission. As solar projects are CAPEX-intensive by nature, support schemes should provide remuneration insurance to project developers, allowing them to minimise market uncertainty and make their investments with confidence. This is the model of two-way Contracts for Difference (CfDs), which complement the market price where the latter does not reach the strike price.  

In parallel, Power Purchase Agreements (PPAs) have also become central to deploying solar PV projects and decarbonising industrials. It has been made a strategic priority to remove all barriers to their uptake, for Europe to enhance competitivity and security of its industry.