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Naturgy's small solar permit is a grid play

A 16.2 MW solar addition to an existing Spanish wind farm lets one interconnection carry more generation.

At a glance

  1. Solar added to an existing wind farm can run through the same point of interconnection, adding generation without adding a queue position.
  2. Grid capacity is the binding constraint in the energy transition, and power rights are becoming an asset class of their own, so a permit like this is a direct purchase of one.
  3. The 16.2 MW is small in absolute terms, but the pattern is not.

Naturgy has won approval to add 16.2 MW of solar to an existing wind farm in Spain, a site Renewables Now does not name and whose location matters less than what the permit attaches to: the farm's grid connection. Solar added to an existing wind farm can run through the same point of interconnection, adding generation without adding a queue position. Grid capacity is the binding constraint in the energy transition, and power rights are becoming an asset class of their own, so a permit like this is a direct purchase of one.

The 16.2 MW is small in absolute terms, but the pattern is not. Every wind-solar hybrid approval makes an existing connection do double duty, a quiet answer to the interconnection backlog. Expect more of these approvals, because the cheapest new capacity in Europe is the capacity that never has to ask for a new line.

Reported by the Energy Transition desk from Renewables Now. Published . Corrections

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