Low Power Prices in Spain Deter PV Investors, Lower Values of Projects

Reduced and negative power prices in Spain have lowered investor appetite, with the value of solar power projects falling by 50% since last year, according to Lucia Gonzalez energy director at Ontier law firm, cited by Montel.

• "We see that investor appetite has reduced compared to six months ago,” Gonzalez said.
  
• Gonzalez added that many companies are pivoting and have stopped investing in certain technologies. Companies have been instead focusing on the sale and purchase of projects due to the drop in electricity prices.
• But the director of project finance at Banco Sabadell believes that projects will still be able to cover their debt, although the downward trend of prices does pose a threat.
• Day-ahead power prices in Spain have averaged €37.36/MWh since the beginning of the year, compared to €87.11/MWh in the same period last year and €212.87/MWh in 2022, according to Montel.