The green bubble has burst in Spain. After years of record growth, the renewables companies that operate in the green sectors par excellence, from wind to solar through photovoltaic, have recorded a heavy short circuit for now measurable in a share loss of over 6 billion. This is due to too fast growth which, in some cases, did not support the sudden collapse in prices.
Solaria, Acciona Energía, EiDF, Energy, Enerside, Greening, Holaluz, Solarprofit, Umbrella, Audax, Grenergy, Ecoener and Soltec are just some of the companies that have recorded multi-million dollar losses, problems with auditors, sensational stock market collapses. Renewable companies in Spain, which only a year ago were still experiencing an economic boom that seemed to have no limits, have entered a spiral of problems that analysts today define as “the bursting of the Spanish green bubble”.
Will it be the same in the rest of Europe or in Italy? «It’s difficult to predict but a contraction of the sector from its first glories is certainly underway, explains an expert in the sector, if only because of the price level which has fallen significantly over the years and therefore does not guarantee the same important returns». In Madrid, Holaluz increased its losses fivefold; Solarprofit announced pre-bankruptcy. «This is just the tip of the iceberg of much more serious problems that affect the entire sector, and that the stock market has been anticipating for months, like a bad feeling», says the Spanish press. All the large independent renewable companies in Spain are now worth less than the highs achieved in recent years. And Acciona Energía led by Jose Manuel Entrecanales or Solaria, which are part of Ibex, the first Spanish market, are no exception. On average, renewable companies have lost 60% of their value since their peaks in 2021. Acciona, for example, reached a high of 207 euros in 2022 and is worth 113 euros today.
Overall, within a few months, more than 6 billion in stock market value of renewable energy companies evaporated. At the moment the impact does not seem to involve Endesa in a substantial way, the Enel subsidiary in Spain has seen a contraction in turnover (from 32 billion in 2022 to 25 in 2023). And therefore the situation may not be so serious in other more structured companies.
For all of them the root of the problem is the same: «A binge of green megawatts and, later, a poorly managed hangover. And this will lead to a natural selection among green players.” On the other hand, it is clear and written in the industrial plans that Endesa, as well as the Spanish electricity company Naturgy, have reduced their planned spending on renewable energy, signaling a “slowdown in the sector”.
It all started with Russia’s war against Ukraine, which broke the classical patterns of the energy market. In 2022, the conflict triggered a historic increase in electricity and gas prices. This meant that renewables were seen as the great salvation to avoid external energy dependence.
Perhaps, however, excessively for the demand.
