The European federation of energy communities represents a network of 2,500 energy communities and 2 million citizens who are active in the energy transition. This year’s annual European Energy Communities Forum offers a wide range of workshops, exchanges and interactive sessions for both starting and more established citizen-led energy initiatives and anyone who seeks to boost a more just, democratically governed energy system.
In February the European Commission officially launched its Clean Industrial Deal (CID). Part oft the Commission’s CID ist he „Affordable Energy Action Plan“, which contains a number of good measures that are aimed to reduce energy prices for citizens, businesses and communities across the European Union. The European Federation of Energy Communities particularly welcomes the action plan’s commitment to a „Citizens’ Energy Package“, which is to be published before the end of 2025.
Specifically the package addresses improving opportunities for communities, citizens and businesses to join together in an energy community and initiatives such as energy sharing. The „Citizens’ Energy Package“ will be particularly important as most Member States have not yet implemented the framework conditions for energy communities required by existing EU legislation. In addition, the Action Plan proposes other measures that will particularly benefit energy communities, such as simplifications in the areas of network charges, power purchase agreements (PPAs) and permits for construction and connection of renewable energy plants.
In addition to praise, however, there is also criticism from the Federation of CID. Specifically, the European Federation of Energy Communities points to positions in the CID that it sees as misguided priorities and tactics that strengthen corporate power at the expense of social fairness. The association considers initiatives such as small modular reactors to be deliberate diversionary tactics that have nothing to do with the goal of affordable energy. The Federation also sharply criticizes the release of investments in liquefied natural gas infrastructure to enable additional gas imports, as well as the repeal of EU legislation that ensures European companies are held accountable for respecting human rights and environmental protection.
Dirk Vansintjan, President of the European Federation of Energy Communities, explains: “Energy communities are social economy actors that form a growing and innovative part of European industry and will contribute to the implementation of the energy transition. To revitalize the European economy, however, the Clean Industrial Deal must be, at its core, a social contract that prioritizes the simplification of regulations for the local production, distribution, and supply of renewable electricity and heat through energy communities, as well as citizen-oriented approaches to renovation and energy savings.”
In any case, the CID provides ample material for discussion at the meeting of European Energy Cooperatives in Krakow, Poland, which will lead to an exciting and hopefully fruitful three-day gathering. Krakow itself is an exciting location, as in recent years the city has undergone a successful transformation from a community dominated almost entirely by coal mining to a modern municipality that excels in services, particularly in the field of green energy. (mg)
Combining solar and wind parks with large battery storage systems at a single location, known as co-location, offers many advantages. For example, the risks for the operators of the renewable energy generation plants are reduced by diversifying revenues, protecting against price cannibalization and shifting generation or feed-in to the evening hours. The economic efficiency of battery storage can be increased by cost savings due to a common grid connection point and a faster grid connection. Advantages for the power supply arise from fewer grid bottlenecks, avoided curtailment of plants and better utilization of scarce grid resources.
So far only small market share for hybrid systems
However, the market for renewable co-location projects in Europe is only just beginning. According to Aurora Energy Research, solar and wind farms with an installed capacity of almost 1.2 gigawatts (GW) were in operation across Europe in 2023, combined with large-scale battery storage. PV plus battery storage was the frontrunner here with 724 megawatts (MW), while onshore wind power plus battery storage was at 475 MW. According to SolarPower Europe, of the 0.8 GW of large-scale battery storage systems with a capacity of 1.1 gigawatt-hours (GWh) installed in Germany between 2021 and 2023, 11 percent were combined with renewable energy plants, primarily solar parks. In the UK, 12 percent of wind and solar farms were combined with battery storage or electrolysers, according to an April 2024 report by industry association Renewable UK.
However, experts and industry representatives are seeing a significant increase in demand for large-scale battery storage and co-location projects. In Germany, project developers have currently submitted grid connection requests for 161 GW of battery storage capacity, which is a hundred times more than the 1.6 GW currently installed. SolarPower Europe also predicts strong growth in large-scale battery storage in its “European Market Outlook for Battery Storage 2024-2028”. According to a medium scenario, the total installed battery storage capacity is expected to climb to 78 GWh, double the 2023 figure (35.8 GWh).
Growing interest in co-location projects
In a “high scenario”, installed battery capacity in Europe is expected to grow to 135 GWh by 2028. Large batteries, especially grid storage (so-called utility-scale storage), will dominate. Their share of newly installed capacity is expected to rise to 45% by 2028, more than doubling from 2023 (21 percent). As a result, interest in co-location projects is also growing, according to analysts such as Jannik Carl and Eva Zimmermann from Aurora Energy Research. Almost all large-scale PV projects are now combined with battery storage, says Stefan Müller, Chief Operating Officer (COO) of the EPC Enerparc.
Valerii Lazarev, Projects Bankability Manager at WElink Energy, sees negative electricity prices (at peak times), bottlenecks and high costs for grid access as important drivers for co-location projects. EPCs could benefit from the hybridization of existing solar projects by flattening the production curve and delivering energy on demand and thus at higher prices. And this with comparatively low investment costs because there is no need to set up a new, expensive grid connection.
Largest hybrid plant in Portugal
The international developer, based in Ireland, is currently in the process of expanding a 219 MW solar park in Vaquieros (southern Portugal), which was commissioned at the end of 2021, in several phases into a co-location facility with a capacity of over 1 terawatt-hour, according to Lazarev. Initially, the existing 219 MW of PV capacity will be increased by a further 50 MW, followed by the construction of a 165 MW wind farm and then a 100 MW/400 MWh battery storage facility. Construction is scheduled to begin in the second half of 2025 and should be completed by the end of 2027.
Europe’s largest co-location power plant is currently being built by the Spanish energy producer Endesa, also in Portugal (Pego, province of Santarém). The plan is to combine a 365 MW PV plant, a wind farm with 264 MW and a 168 MW battery storage facility. In addition, a 500-kilowatt (kW) electrolyzer will be installed to produce green hydrogen using surplus energy that the battery storage system cannot absorb.
Further cost decline an important driver
The continued decline in costs, particularly for photovoltaics and battery storage, is also an important driver for more co-location projects. According to a study by the Fraunhofer Institute for Solar Energy Systems (ISE) in July 2024, the levelized cost of electricity (LCOE) of solar parks in Germany is between 4.1 and 6.9 euro cents/kWh. When combining ground-mounted PV systems and battery storage, the LCOE is 6.0 to 10.8 cents/KWh.
Should battery prices fall to the predicted levels of 180 to 700 euros/KWh by 2045, the ISE even expects production costs for ground-mounted PV battery systems to be between 3.1 and 5.0 cents. By comparison, the production costs for fossil fuel power plants are significantly higher today: brown coal power plants cost 15.1 to 25.7 cents, hard coal power plants 17.3 to 29.3 cents, combined cycle power plants 10.9 to 18.1 cents and flexible gas power plants 15.4 to 32.6 cents per kilowatt hour. Nuclear power plants are between 13.6 and 49.0 cents/kWh.
Reduce construction and operation costs by 50 %
According to Aurora Energy Research, the actual increases in profitability (IRRs) that can currently be achieved by combining a solar power plant with a battery storage system in key European markets are in the range of one to just over two percent. The IRRs of individual solar parks were compared with those that are combined with a battery storage system.
RenewableUK points out the high potential cost advantages of co-location projects if regulatory barriers are removed and approvals are simplified. Combining PV projects with battery storage at the same grid connection point could reduce construction and operating costs by 50 percent. In addition, a more flexible energy system with the integration of storage in the UK would save 16.7 billion pounds (19.8 billion euros) in electricity system costs annually by 2050, which would also benefit electricity customers.
Complexity and regulation as obstacles
There are various reasons why co-location projects are often unable to fully exploit their potential cost advantages in practice and why the number of projects implemented is only gradually picking up speed. “In addition to regulatory issues, this combination of technologies is extremely complex in terms of structure and commercialization. Business models must be considered individually and, depending on local parameters, a single project can often be more attractive than a co-location project,” says Philipp Kraemer, Director Strategic Growth & Digitization at CCE.
In Germany, for example, the so-called exclusivity principle of the Renewable Energy Sources Act (EEG) has so far slowed down the economic viability of solar and wind farms combined with battery storage. It states that EEG-subsidized plants may only be charged with green electricity and not with gray electricity (from the grid) throughout the year, otherwise the EEG plant status or the subsidy will be lost. This severely limits a profitable, flexible operation of the storage system in co-location with a solar or wind farm for shifting the feed-in to high-price hours and for providing balancing energy (during which grid electricity is also charged).
UK, Ireland and Italy already further ahead
According to the solar package I, it should be possible to change the operating mode every two months from June 2025, and to charge the storage system from the grid and the renewable energy system in parallel from June 2026. However, Aurora analyst Zimmermann fears delays in the regulation coming into force in Germany, because the Federal Network Agency, which is responsible for the regulation, has not yet decided on a measurement concept. Other European countries, such as the United Kingdom, Ireland and Italy, which allow flexible operation of co-location systems, are already further ahead in this respect, says Zimmermann.
Intersolar Europe, which is taking place this year from May 7-9, offers a comprehensive overview of the latest products, technologies and solutions, as well as the major trends in the field of PV hybrid power plants. At the accompanying Intersolar Europe Conference, there will be a session in English from 2:00 to 3:30 p.m. on Wednesday, May 7, titled “Hybrid PV Power Plants II: Strategies for Matching Energy Generation & Power Demand.” On Thursday, May 8, the topic of hybrid power plants will be the subject of a session in English at the Intersolar Forum (Hall A3, Booth A3.150) from 3:00 to 4:30 p.m. (hcn)
SolarPower Europe has published its ‘Morocco: Solar investment opportunities’ report. This new publication offers key insights into the Moroccan solar sector, and opportunities for international investment. The report was supported by the Global Solar Council (GSC) and Cluster EnR, the Moroccan renewables’ association.
This latest work of SolarPower Europe’s Global Markets Workstream explores the numerous investment opportunities within Morocco’s solar sector, highlighting the country’s market dynamics, regulatory frameworks, as well as concrete recommendations to accelerate solar deployment.
The report provides an overview of Morocco’s business environment, and major macroeconomic trends, while analysing the regulatory framework and infrastructure network of the country. It maps the Moroccan energy sector, including the energy mix, key stakeholders, and the policy and legislative framework governing renewable energy generation, more specifically regarding solar energy generation. Finally, the report’s recommendations reflect the evolving dynamics of the energy sector in the country.
52% renewable power share by 2030
Morocco is committed to expanding its renewable energy capacity, aiming to reach a 52% share of its total electricity capacity by 2030. As the country undergoes its energy transition, the solar sector, in particular, is experiencing a consistent growth, offering investors a chance to contribute to a sustainable future while achieving attractive returns. The report’s most likely ‘medium’ scenario forecasts that Morocco will reach 2.27 GW of total installed solar capacity by 2027, and 2.97 GW by 2028.
During the report’s online launch, Ditte Juul Jørgensen, Director-General of the Directorate-General for Energy (DG ENER) at the European Commission, said in a video statement; “Morocco has emerged as a frontrunner in renewable energy, with ambitious goals to achieve 52% of installed electricity capacity from renewables already by 2030; solar energy is at the heart of this transition…The report serves as an excellent blueprint for action and an important tool for investors, businesses and policymakers to seize the opportunities before us.”
Gustavo Fernandes, Head of Africa and International at Voltalia, and Chair of SolarPower Europe’s Global Markets Workstream stated; “Morocco is a vibrant market on the threshold of significant solar growth, set to become a key global player in the renewable energy sector. This report aims to provide policymakers with actionable recommendations to help unlock the country’s full potential, and drive its transformation.“
2.2 GW solar capacity added by 2028
Fatima Zahra El Khalifa, Director General of Cluster EnR said; “Morocco’s abundant solar potential positions it as a key player in the renewable energy sector. This study highlights the country’s significant role in becoming a regional energy hub. With strategic investment in solar infrastructure, Morocco is poised to realise its full potential, accelerate its energy transition, and foster long-term sustainable growth.”
Sonia Dunlop, CEO of the Global Solar Council said; “Morocco has been a solar pioneer in Africa, and we expect another 2.2 GW of solar capacity to be added by 2028. With a robust regulatory framework, long-term ambition and rising electricity demand catalysed by the country’s green hydrogen strategy, costs will continue to plummet for solar, opening new investment opportunities.”
The report is the fifteenth in a series of SolarPower Europe’s global market reports, which includes: Algeria, Côte d’Ivoire, India, Kazakhstan, Latin America, the Middle East, Mozambique, Myanmar, Oman, Senegal, Tunisia, and Vietnam. (hcn)
The 2025 ranking is led by Menlo Electric, a Polish wholesaler of photovoltaic components with an absolute growth rate of 830,8 per cent. The Polish company, classified in the Energy & Utilities category, leads a list of companies from a wide range of economic sectors. In second place is Allica, a UK-based financial and banking platform serving small and medium enterprises, with an absolute growth rate of 652 per cent. German mobile advertising and marketing platform Almedia is placed third, at 473.6 per cent.
Italy, Germany, France, and the UK account for over three-quarters of the companies in the ranking. The IT and software sector accounts for one-fifth of the FT1000 companies – together with Construction & Engineering, Energy & Utilities, Advertising & Marketing, and Finance & Insurance, this share rises to half.
Eligibility Criteria
· Revenue of at least € 100,000 in the year 2020) and €1.5 million in 2023.
· The company must be independent – no subsidary or branch office.
· Growth between 2020 and 2023 had tob e predominantly organic.
· Minimum average growth rate: 34.8%
· Companies with headquartered in the following countries were eligible to participate: Austria, Belgium, Bulgaria, Bosnia and Herzegovina, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Monaco, Netherlands, Norway, Poland, Portugal, Romania, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, United Kingdom.
It’s good to see that a Polish company from the solar power industry is leading this list of applicants so successfully, and yes – a growth rate of 830.8 percent is breathtaking. Nevertheless, this should not obscure the current situation: Poland experienced a PV boom perhaps similar to that of the German PV-market 12 years ago with seemingly boundless growth, without limits.
Painful experience
In 2012 and 2013 the German photovoltaics industry had to learn the hard way that seemingly fixed rules can change quickly. Over 100,000 jobs were lost at that time, and virtually all cell production was relocated abroad. The Polish PV industry had to contend with significant revenue slumps in 2023 and 2024. The interview with the Managing Director of Menlo, Bartosz Majewski, highlights many connections that should be familiar to companies that have been in the market for some time.
Beyond the Rankings: The Real Challenge of Long-Term Success
The saying that nothing is as certain as constant change is especially true for even the most seemingly invincible economic giants. Strong sales growth does not guarantee long-term security, nor does high revenue necessarily translate into profitability. Being ranked among the top-performing companies in Europe is undoubtedly a remarkable achievement. However, the greater challenge lies in ensuring a company’s long-term resilience—navigating turbulent times while maintaining a skilled workforce and cutting-edge technology to sustain success for decades to come. (mg)
The rapid expansion of photovoltaic (PV) systems and the growth of renewable energy present new challenges for the energy system, particularly with regard to the integration and demand-oriented feed-in of solar power. Critics often question the viability of the energy transition by pointing to brief periods of low renewable generation, so-called “dark doldrums.”
However, this perspective overlooks the potential of battery storage systems to bridge these gaps by storing excess energy and feeding it back into the grid when needed. This capability has given rise to a business model that offers attractive opportunities for both system operators and investors. The following sections explore how battery storage can be leveraged as a business model in the PV sector, the technological advancements shaping the market, and the associated economic benefits and challenges.
Fundamentals and functionality of battery storage in PV systems
Battery storage systems in the PV sector help balance the discrepancy between variable power generation and actual energy demand. Excess solar power is stored as chemical energy and converted back into electrical energy when required, such as during periods of low sunlight or high grid load.
Today, the most common technology is lithium-ion batteries, which offer high energy densities, fast response times, and good scalability. Business models become viable only at a minimum capacity of 1-6 MWh, as containerized solutions with integrated safety features, climate control, battery management systems (BMS), and the necessary transformer stations only become cost-effective at this scale.
Economic advantages and business models
Integrating battery storage into PV systems unlocks various economic opportunities:
Optimization of self-consumption: Battery storage enables operators to maximize the use of their self-generated solar power, reducing reliance on the public grid and lowering electricity costs.
Revenue generation through grid services: Battery storage allows for the provision of ancillary services, such as frequency and voltage regulation, creating additional revenue streams through grid services.
Load management and arbitrage: Operators can take advantage of electricity price fluctuations by storing power when prices are low and selling it when demand—and prices—are high.
Investment security through long-term contracts: Long-term power purchase agreements (PPAs) and government incentive programs provide a stable foundation for predictable revenues, significantly reducing investment risks.
Modular expandability: Battery storage systems are highly scalable, allowing smaller installations to be expanded as needed, ultimately lowering storage costs.
Rapid advancements in battery storage technology have significantly contributed to the attractiveness of this business model:
Improved energy storage density and efficiency: Innovations in materials science and battery management systems are leading to higher efficiencies and longer life cycles.
Faster charge and discharge cycles: Modern battery systems can respond quickly to changes in power supply, making them ideal for short-term grid stabilization.
Digitalization and smart control: AI and smart grid technologies optimize the integration of battery storage into the power network, reducing operational costs and enhancing profitability.
The future development of large-scale battery storage as a business model will be influenced by several key factors:
Further expansion of renewable energy: As more renewable energy is fed into the grid, the demand for effective storage solutions will continue to rise.
Technological innovations: Emerging materials and storage technologies will drive costs down while increasing efficiency.
International cooperation: Integrating large-scale storage into European energy markets and cross-border networks wile open up new business opportunities.
Digitalization and smart grids: Intelligent control systems will optimize storage utilization and enhance the economic viability of battery storage solutions.
Market potential and future outlook
With the continued expansion of photovoltaics, the increasing decentralization of energy supply, and the sharp reduction in battery costs to below €200,000 per MWh, the demand for battery storage systems will continue to rise. Future trends include:
Expansion of storage capacities: As renewable energy integration increases, modular battery storage systems will become an essential component of modern energy systems.
Innovative financing models: Green bonds, crowdfunding, and cooperative models can facilitate investment in battery storage.
International expansion: In regions with high solar exposure and unstable grid infrastructures, the demand for PV-supported battery storage systems will grow significantly.
Synergies with other technologies: Combining battery storage with power-to-X technologies or intelligent load management systems will further strengthen this business model.
Conclusion
Battery storage as a business model in the PV sector offers a forward-looking solution for optimizing self-consumption, increasing revenue, and stabilizing the grid. Despite high investment costs and technical challenges, ongoing technological advancements and innovative financing models create numerous economic opportunities. With clear regulatory frameworks and growing market acceptance, battery storage systems represent a key component of the energy transition—a business model that offers long-term stability and growth potential for both investors and operators.
The market potential for large-scale battery storage will continue to expand significantly in the coming years as renewable energy integration progresses and government incentives, as well as regulatory measures, further support the investment landscape. (Erich Merkle/hcn)
The energy sector faces the challenge of meeting global climate targets while also satisfying the growing demand for energy. The demand for clean, reliable, and affordable energy sources and solutions is at an all-time high and continues to rise. Providers like the green tech company PLAN-B NET ZERO must develop strategies to address these challenges.
One approach that has provenparticularly effective in this complex and dynamic environment is the‘Buy & Build’ strategy, which offers an efficient way to expand market presence, integrate expertise and technological innovations, and ultimately accelerate the expansion of photovoltaics as well as other renewable energies.
A strategy with perspective
Buy & Build describes the targeted acquisition of specialised companies by an already established company to expand its expertise and market share. Such partnerships allow for the expansion of offerings and value chains, achieving economies of scale. The combination of different expertise results in an ever-growing range of available solutions and technologies that can be bundled and customised for individual customer needs.
Especially in the energy sector, which is increasingly shaped by technological breakthroughs and the integration of new renewable energy sources, this strategy offers clear advantages. The goal is toleverage synergies between companies and combine their expertise to strengthen customer offerings, market positioning, and innovation capabilities.
This approach is also pursued by the Green-Energy startup PLAN-B NET ZERO, which provides comprehensive energy solutions for businesses and private customers. The company covers the entire value chain in the renewable energy sector: from project development and construction to operation and marketing of the generated electricity. To manage this complex range of services, PLAN-B NET ZERO relies on its Buy & Build strategy.
Through the Buy & Build strategy, we can bring together the ‘best in their field’ under one roof. Through collaboration, we create a range of possibilities necessary to truly drive the energy transition forward. Collaboration is the key point – providers unite specialised companies through acquisitions and further develop them together. The strategy ensures that the “platform company” has access to specific expertise whenever needed and has a suitable solution provider within its own group for every scenario.
Diverse advantages for the energy sector
Faster market access and diversification: Building new business areas independently is time- consuming. Buy & Build allows companies to leverage existing structures and resources to expand into new market segments quickly and effectively. Speed is crucial in the energytransition to provide essential technologies and solutions. A Buy & Build strategy facilitates diversification into future-oriented fields such as energy storage solutions, e-mobility, and smart grids.
Accelerating photovoltaic expansion in Europe: By acquiring and integrating specialised solar companies, larger energy providers can streamline the development and deployment of photovoltaic projects. This approach enables faster grid integration, cost reductions through economies of scale, and the rapid rollout of solar infrastructure across multiple regions. Additionally, a unified network of companies can facilitate technological advancements andregulatory compliance, ensuring that solar power becomes an even more dominant force in Europe’s renewable energy mix.
Simplified adaptation of power grids: The energy transition presents enormous challenges for infrastructure, particularly power grids. The shift from centralised energy production inlarge power plants to a decentralised structure with numerous solar and wind power plants requires comprehensive adjustments. Additionally, there is a spatial discrepancy between energy production and consumption: coastal regions with high offshore wind potential contrast with cities and industrial centers inland that have the highest energy demand.
Buy & Build strategies offer a potential solution to these challenges. By bringing companies together, the necessary expertise and resources can be pooled to efficiently expand power grids, integrate and utilise decentralised energy sources more effectively. The combination of various components, such as rooftop photovoltaics, wind turbines, effective storage solutions, and prospective technologies like hydrogen, is a crucial step toward decentralising the power grid.
Buy & Build as a key to climate neutrality
Achieving climate goals requires comprehensive solutions that impact the entire energy value chain— from generation and storage to the distribution of green electricity. Buy & Build enables these areas to be efficiently connected and innovations to be advanced more rapidly.
When multiple players in the renewable energy sector unite under one roof, they can respond more efficiently and quickly to the growing demand and actively contribute to the energy transition. In the context of the energy transition, the Buy & Build strategy is not just a business growth strategy but a key instrument for achieving climate targets and driving the necessary CO₂ reduction. The strategic consolidation of companies promotes the availability of fully integrated energy solutions. (Bradley Mundt/hcn)
NextPower UK ESG (NPUK) is a vital cog in the UK’s Clean Power 2030 ambitions of delivering energy security and decreasing the country’s carbon output through increasing the amount of domestic green power production. The Fund provides investors attractive returns through stable cash flows from a carefully selected portfolio of new-build utility-scale solar PV assets in the UK with long-term contracted revenue streams. The fund made its first distribution to investors in September 2023 just 13 months after its launch.
The cornerstone investor into NPUK was the National Wealth Fund, contributing £250 million on a match-funding basis to drive private capital into new build renewables in the UK. NEC welcomed several new investors into NPUK over the fundraising period, including several local government pension pools, alongside international investors looking to access and capture the attractive growth landscape for new build solar PV in the UK through a specialist investment manager.
400 MW operating solar capacity in 2025
To date, NPUK has already deployed over 70% of its committed capital from investors and has recently acquired its fifteenth asset, raising NPUK’s portfolio capacity to 731MW. NPUK currently has 249MW of operating solar assets in the UK, including Llanwern solar farm, the UK’s largest operating solar asset.
NPUK has a further 482MW of solar and energy storage projects in construction or ready-to-build, alongside further near-term acquisitions in its pipeline. The fund continues to make rapid progress in bringing online additional new-build solar and is on track to achieve over 400 MW of operating capacity this year. NPUK is expected to exceed 1GW of capacity when fully deployed, contributing significant progress towards Clean Power 2030 ambitions of trebling UK solar capacity in the coming five years.
UK attractive market for utility-scale solar
Michael Bonte-Friedheim, Group CEO and Founding Partner of NextEnergy Group , commented: “NextPower UK has been another success story for NextEnergy Capital and the wider NextEnergy Group in the backdrop of a difficult global fundraising environment. We raised £733 million and reached a final close nearly 50% higher than the fund’s initial target of £500 million.
NextPower UK clearly demonstrates the demand from investors for this type of strategy, run by a specialist investment manager with a significant track record of capital deployment into high-quality assets. I would like to thank both our existing and new investors across NextEnergy for their continued support and loyalty and in particular, thank our institutional and pension fund investors who committed to NextPower UK.
The UK remains an attractive and deep market to deploy utility-scale solar and there is a significant opportunity through the UK’s clean energy ambitions for investors to capture this growth with the right execution partners. In anticipation of this, NextEnergy Capital (NEC) will be launching a new follow-on strategy, NextEnergy UK II, early this summer.”
Stuart Nivison, Head of Portfolio Management at the National Wealth Fund, said: “Our cornerstone investment in NextPower UK was our first deal to leverage this scale of additional independent investment, and it is exciting to see their success story play out through this milestone fundraise. Today’s announcement perfectly demonstrates the impact our investments can have. Catalytic capital deployed by the National Wealth Fund going forward can help mobilise institutional investment into clean energy projects across the UK, driving growth and providing greater capacity to power homes and businesses.” (hcn)
NPUK is a vital cog in the UK’s Clean Power 2030 ambitions of delivering energy security and decreasing the country’s carbon output through increasing the amount of domestic green power production. The Fund provides investors attractive returns through generating stable cash flows from a carefully selected portfolio of new-build utility-scale solar PV assets in the UK with long-term contracted revenue streams. The Fund made its first distribution to investors in September 2023, just 13 months after the Fund’s launch.
The National Wealth Fund was the cornerstone investor into NPUK, investing £250 million on a match-funding basis to drive private capital into new build renewables in the UK. NEC welcomed several new investors into NPUK over the fundraising period, including several local government pension pools, alongside international investors looking to access and capture the attractive growth landscape for new build solar PV in the UK through a specialist investment manager.
400 MW operating solar capacity in 2025
To date, NPUK has already deployed over 70% of its committed capital from investors and has recently acquired its fifteenth asset, raising NPUK’s portfolio capacity to 731MW. NPUK now has 249MW of operating solar assets in the UK, including Llanwern solar farm, the UK’s largest operating solar asset.
NPUK has a further 482MW of solar and energy storage projects in construction or ready-to-build, alongside further near-term acquisitions in its pipeline. The Fund continues to make rapid progress in bringing online additional new-build solar and is on track to achieve over 400 MW of operating capacity this year. NPUK is expected to exceed 1GW of capacity when fully deployed, contributing significant progress towards Clean Power 2030 ambitions of trebling UK solar capacity in the coming five years.
UK attractive market for utility-scale solar
Michael Bonte-Friedheim, Group CEO and Founding Partner of NextEnergy Group, commented: “NextPower UK has been another success story for NextEnergy Capital and the wider NextEnergy Group in the backdrop of a difficult global fundraising environment. We raised £733 million and reached a final close nearly 50% higher than the Fund’s initial target of £500 million.
NextPower UK clearly demonstrates the demand from investors for this type of strategy, run by a specialist investment manager with a significant track record of capital deployment into high-quality assets. I would like to thank both our existing and new investors across NextEnergy for their continued support and loyalty and in particular, thank our institutional and pension fund investors who committed to NextPower UK.
The UK remains an attractive and deep market to deploy utility-scale solar and there is a significant opportunity through the UK’s clean energy ambitions for investors to capture this growth with the right execution partners. In anticipation of this, NextEnergy Capital will be launching a new follow-on strategy, NextEnergy UK II, early this summer.”
Stuart Nivison, Head of Portfolio Management at the National Wealth Fund, said: “Our cornerstone investment in NextPower UK was our first deal to leverage this scale of additional independent investment, and it is exciting to see their success story play out through this milestone fundraise. Today’s announcement perfectly demonstrates the impact our investments can have. Catalytic capital deployed by the National Wealth Fund going forward can help mobilise institutional investment into clean energy projects across the UK, driving growth and providing greater capacity to power homes and businesses.” (hcn)
After January’s signs of stabilization, February saw selective price adjustments. While some module categories — like monofacial N-type and P-type — experienced declines due to competitive pressures on popular brands, others, such as bifacial N-type and full black modules, recorded notable upticks. This divergence reflects a market balancing act between oversupply in certain segments and tightening availability in others.
Meanwhile, inverter prices continued to soften across both hybrid and on-grid categories, suggesting ongoing competition and stock normalization among suppliers. Despite these fluctuations, the strong PMI score indicates that buyers are undeterred, focusing on strategic procurement and premium technologies to meet rising demand.
The PV Purchasing Managers’ Index (PMI) remains an essential measure for assessing market sentiment and demand trends in the European solar industry. This index, derived from the purchasing intentions of over 600 users, selected from a pool of more than 24,000 registered on sun.store, offers a detailed snapshot of the market’s current condition and future direction. By gathering insights from a diverse group of installers, distributors, and other industry players, the PV PMI highlights shifting purchasing patterns, helping to track key developments in solar procurement across Europe.
sun.store
The PV Purchasing Managers’ Index (PMI) rose in February
PV PMI: Buyer confidence peaks at 73
February’s PV PMI reached 73, the highest level in recent months, underscoring a bullish outlook among solar industry stakeholders. Based on responses from 630 buyers out of over 24,000 registered users on the sun.store platform, the survey revealed:
● 58% of respondents plan to increase purchases, reflecting proactive stockpiling ahead of spring projects.
● 30% intend to maintain current order volumes, ensuring steady market activity.
● 12% anticipate a reduction in orders, a consistent minority reflecting lingering caution.
This PMI score, calculated as PMI = (P1 * 1) + (P2 * 0.5) + (P3 * 0) — where P1 is the percentage reporting improvement, P2 no change, and P3 deterioration — highlights a market poised for expansion. Key drivers include:
Stabilizing supply and selective price drops
While some module prices dipped (e.g., monofacial N-type and P-type), reflecting competitive pricing from brands like JA Solar and AIKO, others rose due to tightening stock levels. This mixed trend has encouraged buyers to secure inventory early, anticipating potential supply constraints later in the year.
Preparation for peak season
With spring installation season approaching, the high PMI score suggests buyers are locking in orders now to avoid delays or price hikes. The focus on premium technologies, such as bifacial and full black modules, further supports this strategic shift.
Robust market sentiment
The PMI jump from 71 in January to 73 in February signals growing trust in market stability. Buyers appear less focused on chasing the lowest prices and more on securing reliable supply chains and high-performance components.
Expert commentary: The market in transition
Filip Kierzkowski, Head of Partnerships and Trading at sun.store, commented: “February’s data shows the market finding its rhythm. The PMI of 73 reflects confidence that goes beyond short-term price movements. Buyers are prioritizing availability, especially on premium models, as they prepare for a busy Q2. The slight dip in some module prices hasn’t slowed activity—it’s actually spurred strategic buying. This heightened interest in modules may also stem from news of legislative changes in China, where recent pricing reforms for grid-connected renewable power are redirecting production to meet local demand. As a result, this shift could significantly impact delivery schedules to the EU in the coming months.”
Michał Kabała, Business Consultant added: “Limited availability of affordable, mainstream products has shifted buyer preference toward higher-quality, premium options offering better value. For example, Aiko modules saw a 16% price drop from January to February 2025, while Jinko prices rose by 3%.”
Module prices: a tale of two trends
February’s module pricing revealed a split narrative, with declines in monofacial categories and gains in bifacial and full black segments:
Monofacial modules:
N-type: Prices fell to €0.100/Wp (-2%), driven by competitive pricing on popular models from JA Solar and AIKO. Despite the drop, demand remained strong, supported by the shift toward high-efficiency options.
P-type: Prices declined to €0.078/Wp (-6%), reflecting softening demand for standard modules as buyers pivot to premium alternatives and stock levels normalize.
Bifacial modules:
N-type: Prices rose to €0.094/Wp (+4%), signaling robust demand for bifacial technology in large-scale projects. Tightening availability contributed to the uptick.
P-type: Insufficient sample size to establish trends.
Full black modules:
Prices increased to €0.096/Wp (+7%), driven by limited stock and strong demand for aesthetic, high-value installations. Sellers capitalized on this trend, pushing prices upward. This mixed performance suggests a market transitioning from blanket price declines to a more nuanced balance, with premium technologies gaining traction.
sun.store
Module pricing revealed declines in monofacial categories and gains in bifacial and full black segments in February.
Inverter pricing: softening across the board
Inverter prices continued their downward trajectory in February, reflecting competitive pressures and ample supply:
Hybrid inverters:
<15kW: prices eased to €121.27/kW, marking a decline of 2% from January. This subtle drop was fueled by steady demand in the residential sector, where homeowners and small installers remain active, yet suppliers ramped up competition to capture this consistent market share. The result? A slight price adjustment downward as brands vie for dominance in this popular category.
>15kW: larger hybrid inverters saw prices slip to €88.55/kW, a modest decrease of 1%. This gentle softening hints at a cooling in orders for bigger hybrid systems, possibly as buyers shift focus toward on-grid solutions or pause to reassess needs ahead of peak installation months. Even so, the change is small, suggesting this segment remains stable but not immune to broader competitive pressures.
sun.store
Inverter prices continued their downward trajectory in February.
On-grid inverters:
<15kW: smaller systems saw prices fall to €55.64/kW, a reduction of 2% from the previous month. This decline reflects a market flush with stable stock levels, where manufacturers and distributors are feeling the heat of ongoing price pressure. With supply readily available, buyers in this segment—often tied to residential and small commercial projects—benefit from suppliers’ efforts to stay competitive.
>15kW: larger on-grid inverters experienced a slightly steeper drop, landing at €24.95/kW after a 3% decrease. This more pronounced shift points to a competitive push among suppliers catering to utility-scale and commercial installations. As these players jostle for position in a segment with steady but price-sensitive demand, the lower prices suggest an effort to clear inventory or attract bulk orders as Q1 progresses.
Brand preferences: LONGI, Sungrow and Huawei lead
February’s transaction data highlighted shifting brand preferences:
Modules: LONGI emerged as the top choice, overtaking Jinko Solar, thanks to its competitive pricing and reliability in both monofacial and bifacial categories.
Inverters:<15kW: Sungrow took the lead, reinforcing its dominance in residential and small commercial systems.
>15kW: Huawei surged ahead, favored for its performance in larger installations.
These preferences underscore buyers’ focus on trusted brands delivering value and efficiency amid evolving market conditions.
Outlook for the coming months
With a PMI of 73 and demand for premium modules on the rise, the European solar market is entering spring with momentum. While selective price drops persist, the increases in bifacial and full black categories — coupled with tightening stock — suggest a shift toward a more balanced supply-demand dynamic.The next few months will test whether this confidence translates into sustained growth, but February’s data paints an optimistic picture. Buyers are acting decisively, and the market appears well-positioned for an active 2025.
About – pv.index & The PV Purchasing Managers’ Index (PV PMI)
pv.index tracks monthly trading prices for solar components, based on data from sun.store, Europe’s largest online PV trading platform with over 8.9 GW of components available. Prices are weighted by transaction power to provide a reliable market estimate.The PV PMI gauges demand sentiment in the PV industry, with scores above 50 indicating expansion. It’s calculated from a sample of 630+ sun.store buyers, offering a snapshot of purchasing intentions across Europe.The PV PMI was calculated as: PMI = (P1 * 1) + (P2 * 0.5) + (P3 * 0), where: P1 = percentage of answers reporting an improvement, P2 = percentage of answers reporting no change, P3 = percentage of answers reporting a deterioration. Survey is based on a sample of 900+ sun.store buyers. (hcn)
The International Solar Manufacturing Initiative (ISMI) was launched in Brussels in the presence of representatives from the European Commission and the European Investment Bank, with a statement of support from eight European solar manufacturers.
Máté Heisz, Director of Global Affairs at SolarPower Europe said; “EU legislation, like the Net-Zero Industry Act, and the new European competitiveness agenda is driving demand for resilient solar products at home. ISMI is set to complete the picture by driving demand for European products and expertise abroad, while simultaneously helping Europe’s partners to deliver their economic and sustainability goals.”
Key goals of the initiative
ISMI has four key goals: 1. Supporting European solar manufacturing companies in tapping into the enormous global clean-tech demand pull. 2. Advocating for export and development cooperation policies that will boost European competitiveness and the development goals of EU partner countries. 3. Working to secure public financing from the EU Global Gateway strategy, European Development Finance Institutions (DFIs) and Export Credit Agencies (ECAs) to realise concrete manufacturing projects and export opportunities. 4. Building a stronger and more resilient global solar PV supply chain.
Eight European manufacturers participate – more to come
The first participants in ISMI include solar manufacturers based in five European countries (IT, ES, FR, DE, CH), who are active amongst several steps in the value chain including manufacturing equipment, solar modules, mounting systems, inverters, as well as system connection solutions.
Following companies have signed the launch statement of the initiative so far: Ecoprogetti, Holosoli, K2, Mondragon, SMA, Staubli, Unex and Weidmuller. „We expect to add more in coming weeks and months“, Bethany Megan, spokeswoman of SolarPower Europe told pv Europe.
Mobilise up to €300 billion of investments
Through ISMI, SolarPower Europe will act as a facilitator between the EU Global Gateway strategy, DFIs, and ECAs to secure public financing and access to global markets for European solar manufacturers.
Between 2021 and 2027, the Global Gateway strategy will mobilise up to €300 billion of investments. This will allow EU partners to develop their societies and economies, but also create opportunities for the EU Member States’ private sector to invest and remain competitive, whilst ensuring the highest environmental and labour standards, as well as sound financial management. (hcn)
