Self-consumption as a driver of green energy in Spain
Self-consumption is a key element in Spain’s energy transformation, not only because it is developing, but also because it is gaining great importance in the national economic context. Self-consumption can help save on electrification costs, reduce emissions, promote energy change, and comply with CSR policies, both in homes and businesses. Furthermore, it is essential to achieve a transition of the energy sector towards decarbonization, transforming energy into a renewable source.
Under this umbrella, Spain has become one of the world’s leading countries in terms of self-consumption. This fact favors the reduction of the carbon footprint and the protection of the ecosystem, simultaneously indicating awareness on the part of citizens and large companies, becoming a beneficial alternative for our country.
At Edison Next, we are committed to the innovation, development, and adoption of self-consumption to achieve a more sustainable world, offering full assistance and installation by our specialists. Thanks to self-consumption installed in our country, in 2024, the emission of approximately 1.9 million tons of CO2 was avoided.
According to the annual report published by APPA, the installation of batteries associated with these new self-consumption projects increased in 2024. Although Spain still lacks an official registry, this report selected a sample of more than 1,000 installations distributed throughout the country, recovering information about this sector.
The past year marked the birth of a new market niche in which the first large-scale storage projects in the industrial sector began to be installed. By the end of the year, the accumulated savings according to the APPA report were 1,714 euros for residential installations (24.2% of the investment) and 22,996 euros for industrial installations (33.3% of the investment). Therefore, the country made notable investments in the self-consumption model. The total volume of investments made in 2024 amounted to 1,259 million euros, with 467 million in the residential sector and 792 million in industrial installations, representing a year of growth compared to 2023.
Thus, it is expected that in the coming years, employment and GDP figures will continue to experience changes consistent with the reduction in annual installed capacity recorded in 2024. Thanks to this, the expansion of self-consumption and the projects developed will gradually achieve more competitive prices.
The expansion of this new self-consumption model in the energy sector is mainly concentrated in Catalonia, Andalusia, and the Valencian Community, encompassing almost 50% of the total capacity. Therefore, the autonomous communities play an essential role due to the importance they place on processing subsidies, tax deductions, or administrative simplification. All of this favors the development of self-consumption along with other elements such as sociodemographic factors.
Elements such as industrial capacity, technology, digitalization, and knowledge are fundamental to making self-consumption the main element of the energy transformation. The digitalization of administrative processes and the control of surpluses are also essential factors to promote the expansion of self-consumption. Because the installation and use of self-consumption avoids a large consumption of electricity. The report “The Moment of Electrification” presented by APPA indicates that the energy costs of an electrified home are up to 64% lower than a home dependent on fossil fuels. Thus, the average hourly price of electricity during 2024 ranged between 33.73 euros/MWh during hours of lowest demand and 94.81 euros/MWh during hours of highest consumption.
At Edison Next, we are enabling companies, entities, and public or private buildings this option for producing and consuming green energy, which is more efficient and contributes to the environment. All of this, with the aim of promoting the development of energy policies and boosting self-consumption in Spain.