China is a key supplier of energy storage and grid-forming technologies essential for averting significant power failures.
Last week’s extensive blackouts in Spain, Portugal, and certain areas of southern France may serve as a pivotal moment for European energy policies. As governments realize the critical necessity to enhance grid infrastructure due to the increasing significance of renewable sources in electricity generation, experts have commented on this shift being imperative.
This might also offer chances for Chinese firms participating in Europe’s energy infrastructure sector, they noted.
Electrical power across Spain and Portugal
suddenly cut off
Around midday on April 28, significant portions of both nations were left without electricity, internet access, and mobile phone signals for several hours.
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Although the precise reasons for the blackouts remain unclear, specialists have emphasized that the situation exposed the vulnerability of Iberia’s electrical networks as reliance on solar and wind energy continues to grow in modern power supply systems.
At present, the causes remain unknown,” stated Ismael Morales, who works as the climate policy manager at the Spain-based research organization Fundación Renovable. “The only thing clear to us is that we must draw lessons from this experience moving forward.
He mentioned, ‘We require all the technological advancements from China to enhance the power grid.’ He continued, ‘Currently, what we truly need from Chinese companies… is energy storage. Improving our storage capabilities within Spain is essential.’
Currently, Spain boasts an energy storage capacity of 10 gigawatts, largely attributed to hydropower storage facilities, as stated by Morales. However, the country has been sluggish in expanding this capability through investments in advanced technologies like battery storage systems.
Energy storage is essential for assisting grids in managing abrupt changes in power supply, and Spain’s hydrostorage facilities were instrumental in preventing blackouts last week.
Other countries have
invested far more heavily
In terms of storage technology, Germany possessed 19 gigawatts of battery storage capacity in 2024, as stated in a report by the German Solar Industry Association. The China Energy Storage Alliance noted that China had a total storage capacity of 137.9 gigawatts last year, with 78.3 gigawatts originating from non-hydroelectric sources.
Given Spain’s rapidly expanding renewable energy sector, with a significant focus on increasing solar power installations, there is an acute necessity to boost its battery storage capabilities, according to Morales. Additionally, this requirement is compounded by Spain’s intention to close all its nuclear power plants by 2035.
The European battery energy storage market is projected to expand from 17.2 gigawatts in 2023 to 78.1 gigawatts by 2028 under a moderate growth forecast, as stated in a report released last year by the industry group Solar Power Europe.
Sungrow, which leads in battery storage solutions in China, saw substantial expansion in this field last year, as stated in their 2024 annual report. Their systems have been extensively utilized across various markets such as Europe.
The revenue generated by the company’s battery energy storage segment skyrocketed by over 40 percent compared to the previous year, totaling 24.96 billion yuan (approximately US$3.43 billion). This significant increase compensated for a 5.25 percent drop in earnings from Sungrow’s photovoltaic solar panel sector.
Grid-forming technologies, which allow renewable energy power plants and battery energy storage sites to inject electricity into the network independently, shielded from any anomalies in the grid, is another potential area of growth for China’s renewable energy giants.
Huawei Technologies and Sungrow have been dominant players in the European solar power inverter market, accounting for 48 percent of photovoltaic inverters delivered to the EU between 2015 and 2023, as reported by Solar Power Europe. China stands out as a key player in developing grid-forming technologies.
“[Chinese brands] offer highly competitive products — there are certain sectors where they lead the market,” stated Milan Prodanovic, who heads the Electrical Systems Unit at IMDEA Energy, a government research center based in Madrid.
Surely, they will feature in numerous solutions that will be showcased in Spain.
Nevertheless, it is yet to be determined how receptive Brussels will be regarding Chinese participation in the sector. Following the Russian invasion of Ukraine, the EU
has remained on high alert
in relation to its energy infrastructure.
On Wednesday, the European Solar Manufacturing Council (ESMC) raised concerns about potential security threats related to inverters supplied by “manufacturers outside Europe—especially those based in China.” The council noted that these devices may allow maker companies to access them remotely.
Christoph Podewils, the secretary general of the ESMC, stated, “It is crucial for Europe to take action immediately to avoid a potential energy crisis as severe as its current dependence on Russian natural gas.”
We back the forthcoming evaluation by the European Commission regarding cybersecurity threats within the solar supply chain and stand prepared to offer our specialized knowledge.
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