In recent years, self-consumption of energy has taken on a key role in Europe, as large companies and individual consumers look for sustainable solutions to generate their own energy. This trend has been driven by advances in renewable technologies, new regulations in the European Union and by the growing interest in reducing greenhouse gas emissions. However, while countries such as Germany are leading the way in the adoption of self-consumption systems, others such as Spain have faced significant regulatory challenges.
E.ON, the German power company, has been a key spokesperson in promoting self-consumption and energy independence through innovations such as the SolarCloud system. This initiative allows users to not only generate solar energy at home, but also store it virtually and use it when needed. In addition, advances in infrastructure and regulation allow consumers to share energy, store it, and in some cases even sell surplus energy to their neighbors.
Self-consumption in Europe: A mosaic of policies and technologies
Each country in the European Union handles self-consumption differently. Germany is undoubtedly one of the pioneers in this field. The German government has implemented policies to financially and fiscally support the installation of solar power generation and storage systems. Self-consumption initiatives in Germany are vast, and the energy storage infrastructure provided by E.ON's SolarCloud has been a crucial component in supporting this rapid growth.
In the case of Spain, however, the progress of self-consumption has been marked by bureaucratic obstacles and the famous “Tax on the Sun”, which forced consumers of renewable energy to pay for their own consumption. Although this barrier was eliminated in 2018, the repercussions of years of restrictive policies are still palpable. Today, there are more favorable regulations, and the growth of self-consumption is on the rise, but the lack of infrastructure such as microgrids and the fear of reduced tax revenues have slowed its adoption.
SolarCloud: A pioneering system for virtual storage
The SolarCloud system, developed by E.ON, enables the “virtual” storage of energy generated at home or in commercial facilities. This innovative concept allows users to store an unlimited amount of electricity generated by solar panels in a specific account; this virtual energy can then be consumed at different times and places, giving consumers unprecedented flexibility. By April 2024, customers in Germany will already be able to fully enjoy this service, which is designed to reduce dependence on the electricity grid.
The “Clean Energy for All Europeans” package and the barriers in Eastern Europe
The EU initiative “Clean Energy for All Europeans” has been a key element in promoting self-consumption and renewable energy within the bloc for the period 2021-2030. However, there is reluctance in some Eastern European countries such as Poland and the Czech Republic, which remain heavily dependent on coal. These countries have put up barriers to several proposals that favour clean energy. The legislative package also includes measures for families and communities to produce their own clean energy, which Greenpeace calls “energy citizens”.
Poland, like the Czech Republic, is still heavily dependent on coal. Although efforts have been made to get these countries to include solar and wind energy in their energy mix, the difficulties in the transition are evident. In addition, the lack of an efficient storage network and other infrastructure necessary for successful self-consumption makes progress slower compared to countries such as Germany.
SolarCloud's role in the future of self-consumption
E.ON is not only promising virtual storage for its customers in the future, but will also enable consumers to sell or share surplus energy with their friends and neighbours. These kinds of technological innovations are part of a more sustainable energy future where consumption and generation flow dynamically. Furthermore, the application of these models, although initially exclusive to Germany, is expected to expand to other European countries.
A rapidly growing sector in the context of self-consumption is the charging of electric vehicles. Consumers who generate their own energy will have the ability to recharge these vehicles at home using the energy stored through SolarCloud. This is a decisive step towards energy independence, not only at home, but also in mobility.
Challenges in other countries such as Spain focus on the lack of support for storage infrastructure, something that is being addressed with new legislative initiatives and new R&D investments. Countries such as the Netherlands are leading the way in the adoption of solar panels in every home, reaching up to 30% of homes according to recent estimates by 2024.
Brexit and its impact on the energy transition in Europe
As for the UK, after Brexit, it is still unclear what kind of role it will play in the debate on renewable energy within the framework of the European Union. The hardening of the US stance under the previous administration against renewable energy has created uncertainty. According to Greenpeace, it would be more beneficial for the UK not to be at the negotiating table on these issues.
France, for its part, still relies on nuclear power for a large part of its energy generation, although it has also begun to implement changes in its energy mix. Although the neighbouring country remains a nuclear power, aspirations for solar and wind energy may begin to make greater progress depending on the political landscape after the next elections.
The influence of climate change and war on the energy transition
The conflict in Ukraine and the geopolitical tensions that have spread across Europe have been triggers for a paradigm shift in renewable energy. The use of fossil fuels has fallen, and there has been a significant increase in the transition to renewables, especially with solar photovoltaics. However, more infrastructure and support for renewables will still need to be created in the different European territories.
Future projects and challenges of self-consumption
Looking ahead, both Germany and Spain will need to continue to adapt their infrastructure and energy storage systems to overcome the challenges of self-consumption. While Germany is positioning itself as the undisputed leader, Spain continues its climb in the sector, driven by the massive increase in installed photovoltaic capacity. The IEA (International Energy Agency) predicts that, by 2024, Spain will lead Europe in terms of photovoltaic self-consumption installations, with up to 5 GW additional in that year.
Power purchase agreements (PPAs) are also gaining traction as a viable solution for large energy consumers in Spain, as they allow them to secure stable prices in the long term and encourage the generation of renewable energy. The United States, Spain, and Sweden are leading the way in this business model, with a steady increase in projects under this arrangement in the short and medium term.
In the case of countries such as Italy or France, although they have implemented measures to encourage the use of renewable energy, they still face obstacles related to previous energy policies and dependencies, such as coal or nuclear energy, although greater adoption of self-consumption models is expected, especially in industrial areas.
The future of self-consumption in Europe is marked by the need for greater investment in storage technology, more efficient distribution networks, and policies that encourage the adoption of collaborative energy models, with initiatives such as SolarCloud at the forefront of this evolution.