Energy transition trends show battery arbitrage growth in Spain and offshore wind expansion in Netherlands

In Spain, the monthly average intraday one-hour electricity spread rose to €215.37/MWh in September, up from €195.29/MWh in August. This increase highlights the growing attractiveness of Battery Energy Storage Systems (BESS) as solar penetration lowers midday prices while evening prices remain high. However, experts warn that the long-term bankability of these projects depends on how market cannibalization—where increased battery capacity reduces price spreads—affects future revenues.

In the Netherlands, renewable energy is projected to exceed 80% of the country's installed electrical capacity by 2035, up from 65% currently. This shift is driven by a strategic move from rooftop solar toward large-scale offshore wind in the North Sea. The transition aims to address grid congestion and frequent negative electricity prices during midday solar peaks. Thermal generation is expected to decrease significantly as coal is phased out of the national power system.