Written by: Fatima Younis
The solar energy self-consumption sector is witnessing a radical transformation focusing on energy storage instead of selling surpluses to the grid, in light of regulatory challenges, saturated electricity supply networks, and falling electricity prices during daytime peak hours, which is reshaping the model of reliance on domestic and industrial solar energy.
The Strategic Shift Towards Energy Storage
About 500,000 households and some 50,000 industrial and commercial facilities rely on solar energy self-consumption systems as an economical and efficient solution. With installed capacity reaching about 6.5 gigawatts in the industrial sector and 3 gigawatts in the residential sector, the sector faces structural challenges represented by electricity grid saturation, slowness in administrative procedures, and the distribution of quotas among subscribers in residential buildings.
The Impact of Zero Prices and Decreasing Feasibility
The recurrence of zero or negative prices in the wholesale market during daytime peak hours due to abundant solar supply has undermined the traditional model based on selling surplus energy to the grid. Pumping energy is no longer financially viable at midday, which has boosted the sector's trend towards integrating storage batteries in the majority of new installations to save energy and use it at times when grid prices rise or additional energy is required.
Pending Legislation and the Role of Energy Communities
The renewable energy sector is awaiting the issuance of a new package of government legislation to update self-consumption regulation, which includes integrating energy storage batteries and regulating energy communities that bring together users to share production and storage systems. The proposals also include expanding the maximum distance between solar installations and consumption points, and setting clear deadlines for completing the connection procedures of new facilities, which contributes to enhancing the flexibility and stability of the electrical system.
