Insights

A reliable electricity system has a cost. And ultimately, that cost is paid by consumers. According to OMIE data, from January to August 2026 technical restrictions added an average €18.87/MWh to electricity demand in Spain. For free-market suppliers, where most industrial consumers are supplied, the accumulated average was €18.85/MWh. This is not the pool price. It is an additional cost arising from the adjustments required to operate the electricity system reliably and securely. For an industrial company consuming hundreds of GWh per year, €18.85/MWh is clearly not a marginal consideration.

As electricity demand grows, renewable penetration increases and the power system becomes more complex, industry needs to look beyond the wholesale price and consider the total cost of securing reliable electricity. At Teal Renewables, we believe this strengthens the case for bringing generation closer to demand.

On-site or nearby renewable generation will not replace the electricity grid. A strong and reliable grid remains essential. But a dedicated generation can allow an industrial consumer to secure part of its electricity needs through infrastructure designed around its own demand, while reducing its exposure to some of the costs and uncertainties of purchasing all of its energy from the system.

Reliability has a cost. The question for industry is how much of that cost and risk can be managed differently. But industrial consumers should also explore what they can do behind their own meter.

You can't budget for a pool price, at least, not comfortably.

The Spanish electricity market gave us another reminder of that this September. For 29 September, the Spanish day-ahead market cleared at an average of €130.10/MWh. Within the same day, prices ranged from just €1.08/MWh to €239.17/MWh.

That is the market doing what the market is designed to do. But an industrial company operates under a different logic.

Factories prepare budgets. They forecast margins. They approve investments against expected returns. They negotiate multi-year contracts with customers. And energy can represent a material component of their production costs. Volatility creates opportunity for some market participants.

For an industry, it can simply create uncertainty. This is why we believe one of the most relevant conversations around industrial energy is shifting from "How cheap can my electricity be?" to "How much visibility can I have over my electricity costs?"

The two questions are not the same.

At TEAL Renovables, this is fundamental to how we approach industrial self-consumption. The objective is not simply to produce renewable electricity at an industrial site. It is to assess whether dedicated renewable infrastructure and offsite PPAs can reduce exposure to market prices and provide greater long-term cost visibility around part of the site's consumption.

A predictable MWh over the life of an investment may be much more valuable.

Future power prices, electricity demand growth, electrification pathways, energy storage deployment, and industrial development will all shape Spain's energy system in the coming decades.

In this context, technologies that can remain competitive across different market scenarios will play a critical role.

At TEAL Renovables, we believe wind energy is one of those technologies. Its generation profile complements other renewable technologies, contributes to energy independence and supports the decarbonization of the economy while providing long-term value to consumers, industry and investors.

Wind has been part of the energy system for decades. Its maturity, resilience and ability to adapt to changing market conditions make it a key component of the future energy mix.

As Spain continues its transition towards a more electrified economy, we believe wind energy will remain one of the pillars supporting sustainable industrial growth.

TEAL Renovables combines the agility of a local Iberian platform with the strength of TEAL's global experience in development, delivery, and investment, now focused on Spain and Portugal.

For energy-intensive industries navigating the energy transition, that means a partner who understands the local grid, permitting, and market dynamics, backed by the financial and technical depth to see complex projects through from origination to COD.

Innovating Spain's renewable energy future starts with power delivered where it's actually consumed.

As a Spanish development company, we build grid-savvy, co-located renewable energy hubs directly beside large industrial loads - solar PV, wind, batteries, or hybrid plants, matched to what each site needs. Beyond self-consumption, we bring specialized wind and repowering capability, with a longer-term ambition to position wind and pumped hydro projects in strategic locations across Spain.

It is a de-risked model: TEAL Renovables carries the development, construction, and operational risk - our industrial partners commit only to a long-term PPA, with no permit or equity exposure.

The result: competitive power, lower transmission losses, less curtailment, and a more resilient grid - decarbonizing Spanish industry from the inside out.

We are proud to announce the launch of TEAL Renovables, a new development company within TEAL dedicated to renewable energy projects, with a strategic focus on the Spanish market.

TEAL Renovables will focus on the early-stage development of renewable energy assets, drawing on TEAL's expertise and ongoing commitment to the global energy transition. Spain has been chosen as a key market due to its strong policy framework, growing demand for clean energy, and clear ambition to accelerate the deployment of renewable power.

This launch marks an important milestone in TEAL's broader strategy to expand its renewable energy footprint internationally and invest in markets with strong long-term fundamentals. Through this new entity, we are building a dedicated platform for close collaboration with local partners and stakeholders in Spain, advancing high-quality projects that contribute to the country's decarbonization and electrification goals.