Barclays sees battery storage as new growth lever for European renewables

SOLARIA ENERGIA Y MEDIO AMBIENTE SA

08/04/2025 11:28

** Barclays says battery storage has become a growth lever for European renewable energy, against a backdrop of saturation in wind and solar assets in the continent's electricity system

** It prefers Spain's Solaria SLRS.MC and Grenergy GREG.MC (both "overweight"), saying they can achieve higher internal rates of return and EBITDA margins than larger utilities such as Endesa ELE.MC and Iberdrola IBE.MC

** It upgrades Grenergy from "equal weight" citing its technological and geographic diversification through battery storage business in Chile

** It cuts Italy's ERG ERG.MI to "equal weight" from "overweight" due to lack of visibility on capacity growth post-2027, as green incentives for Italian wind end in 2027

** It cuts Norway's Scatec SCATC.OL to "equal weight" from "overweight", saying power purchase agreement prices in South Africa, one of its largest markets, will likely trend downwards in the medium term

** It also downgrades Swedish Orron Energy ORRON.ST to "underweight" from "equal weight" on lack of medium-term capacity growth

 (Reporting by Tiago Brandao)

 ((Tiago.Brandao@thomsonreuters.com;))