Grid-scale

AleaSoft: Battery-backed solar the new normal

With battery prices declining and both technological and regulatory developments enhancing their viability, AleaSoft Energy Forecasting reports that renewables have entered a new five-year cycle—one centered on hybridization.

By

Sergio Matalucci

May 05, 2025

The development of renewable energy is at a turning point as the traditional solar “generate and sell on site” model is no longer sufficient, according to AleaSoft Energy Forecasting.

“The profitability of renewable energy projects increases with battery hybridization,” said the Spanish company. “This January, a new five-year period began, the sixth of the century, in which renewable technologies with hybridization will play a preponderant role in the decarbonization process, especially photovoltaic energy.”

The revenue simulations used by AleaSoft to back its prediction were mostly Iberian but the reference price for Italian wholesale electricity on Thursday suggested the nation is following the Spanish model.

Battery prices continue to fall and technological and regulatory developments are boosting their business case.

AleaSoft added, “In Spain, capacity market auctions are expected to be published at the end of 2025 which could provide an additional source of revenue for energy storage.”

From pv magazine Italia.

Written by

Sergio Matalucci
Sergio Matalucci is a journalist and writer specializing in energy, geopolitics, and international relations. He has worked for Reuters, served as Western Europe correspondent for Natural Gas Europe, and was a senior editor at Ruptly. In addition to his position at pv magazine, he collaborates with several Italian and international publications, including Staffetta Quotidiana and Arte.
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