RENEWABLE ENERGY SOLARIA | Solarium burns in the sun

Energy prices have fallenforecast of a 2.5-fold increase in supply until 2030, administrative interventionism and legal complexities down to the last detail and division into 17 autonomous communities, a highly atomized market throughout the sector’s value chain, a decisive role for large energy companies and distribution networks that want to be active participant in sector transformation, direct competition from others renewable energy sources like the wind and the anticipation of a decisive technological transformation that will enable the development of more advanced storage systems.

Solaria, a pioneer in the photovoltaic energy sector in Spain, founded in 2002. quoted yesterday on the stock market at 9.15 euros after a fall of 7.58%. It is already trading below its 2007 issue price of 9.5 euros per share. The company, controlled by the Diaz-Tejeiro and Larrañaga family, with 35% of the capital, was worth $3.9 billion in January 2021; Today its capitalization is 1,150 million. In addition to the founding family, its shareholders still include some large international fund groups: Norges Bank (4.28%), Blackrock (4.16%), DWS (3.37%), Amundi (3.07% ) and Mirova/Natixis (3). %).

Presentation results for nine months of the year They were the icing on the cake company shares fell. He Ebitda (results after interest, taxes, depreciation and amortization) fell 14% to 132 million and net profit increased by 34% to 57 million. Financial debt is 1000 million euros compared to equity capital of 582 million. Analyst firms expected the company to generate more than 300 million EBITDA in 2026 thanks to new commitments to international diversification and opening to new business.

great asset The company, chaired by Enrique Diaz-Tejeiro, is Framework financing of up to €1.7 billion provided by the European Investment Bank in September 2023. The project includes the construction of up to 120 photovoltaic power plants in Spain, Italy and Portugal, which should be operational by the end of 2028. The total capacity of these projects, estimated at 5.6 gigawatts (GW), will be key to its future growth. Solaria currently has 1.6 GW installed plus 1.53 GW under construction. The goal is to reach 18 GW in 2030 from photovoltaic, wind and hybrid systems, adding Spain plus internationalization, where it has a corresponding weight in Germany. Reports from RBC and Goldman Sachs say Solaria’s future also depends on its ability to develop power generation for data centers being installed in Spain, as well as the contribution of batteries and energy storage systems.

It is a fact that the solar energy market is in full swing. With 30 GW of installed photovoltaic energy, Spain is the second largest power in the EU. after Germany – 73.8 GW. The National Integrated Energy and Climate Plan (PNIEC) sets a target for Spain to reach 76.2 GW of photovoltaic energy in 2030, a figure that could be reached sooner if access permits already requested are met, with the environmental milestone being the first , which must be achieved. be overcome. Hundreds of companies and investment funds compete to win these projects. According to Red Eléctrica, until October the share of renewable generation in Spain was already 57%.

Jose Manuel Soriapartner at Grant Thornton Canarias and former Minister of Industry, Energy and Tourism from 2011 to 2016, explains that this It is still a sector for which there is a large “appetite and in which Spain is destined to strengthen itself as a power.”. What’s the big problem? “We are concerned about the extent of the growing bureaucracy at all levels of government, which could cause confusion and frustration among potential investors.” Soria, for example, cites the growing difficulty of settling even dry lands that have never supported agricultural production. Even, he adds, delays are accumulating in the development of networks needed to transport energy.

Could falling prices impact the sector and companies like Solaria? According to the former minister, this is a cyclical business, and “now we are in a recession phase.” Volatility will tend to stabilize, and the consolidation of new technologies will make sector budgets more predictable. This is what Solaria and many others expect.