The profitability crisis affecting part of the Spanish photovoltaic market is accelerating a phenomenon that until recently occupied a secondary place in development strategies: collective self-consumption . Driven by the regulatory changes introduced by Royal Decree-Law 7/2026, this segment is beginning to consolidate as a concrete alternative for projects that are finding it increasingly difficult to move forward under traditional energy sales schemes.
This trend is already being observed among developers who originally conceived their assets as grid-connected projects and are now evaluating a reconversion of their business model . The goal is to get closer to demand, reduce commercial risks, and take advantage of new regulatory conditions that improve the economic viability of these types of facilities.
" All the projects that were for sale in the 2 to 5 MW range are trying to be reprocessed via collective self-consumption ," said Álvaro de Simón , Founder and Strategic Advisory & Transaction Support of ASB Renewables Consulting in dialogue with Energía Estratégica.
The executive explains that the main attraction lies in the expansion of possibilities for sharing generation within the same geographical environment, which was modified by Royal Decree-Law 7/2026.
" There is a very interesting window of opportunity with the five-kilometer radius, as long as it is close to urban centers or high-demand industrial areas ," De Simón said.
From the wholesale market to local demand
The significance of this movement goes beyond the temporary growth of self-consumption. What is beginning to emerge is a transformation in the way renewable energy projects are designed and monetized.
Until recently, most small and medium-sized developments aimed to secure PPAs or operate with exposure to the electricity market. However, the drop in prices captured by photovoltaics, the proliferation of hours with negative prices, and the increase in curtailment are forcing them to seek new profitability formulas.
In this context, collective self-consumption appears as an alternative capable of reducing dependence on electricity markets and bringing generation directly to the end consumer.
" Many of these projects have been processed as grid-connected projects and now, when they are close to Ready to Build, they say: it makes more sense to try to go this collective route ," explained De Simón.
The shift also stems from financial logic. While utility projects continue to struggle to secure attractive long-term contracts, collective bargaining schemes allow them to capture value through different commercial structures.
" I'm not going to take the counterparty risk when closing a PPA that I could have with a normal utility project . The PPA is being remunerated at a remarkably low price, which is in line with the prices captured from solar ," the executive stated.
The acceleration of collective self-consumption is already reflected in market figures. According to data from e-distribución, Endesa's network subsidiary, collective self-consumption supplies connected to its network exceeded 45,000 at the end of May, compared to approximately 22,000 registered a year earlier . The segment thus doubled in size in just twelve months.
Continue reading
This progress is even more significant considering that at the end of 2021, there were only 48 collective supplies connected to the company's network. Currently, these types of installations already represent more than 10% of all self-consumption connected through e-distribution, compared to just 6% a year ago. This growth is also reflected in new connections. Of the more than 77,000 self-consumption units added to Endesa's distribution network in the last twelve months, approximately 30% are collective installations.
In total, e-distribución manages more than 438,500 individual and collective self-consumption supplies, 21% more than a year ago, with an accumulated power of 4.74 GW.
The figures suggest that collective self-consumption is ceasing to be a niche solution and is becoming one of the most dynamic segments of the Spanish energy market.
An opportunity amidst uncertainty
The conversion of projects towards collective schemes also appears as a response to the uncertainty that is affecting part of the renewable energy industry.
While many developers are looking to incorporate batteries to improve the profitability of their assets, others are finding self-consumption to be a faster way to secure income and reduce market exposure.
Furthermore, De Simón points out that the process is usually faster than for large utility projects. " The applications are usually processed quickly, I mean within a matter of months ," he noted.
The speed of execution, combined with an increasing demand for locally sourced renewable energy, is making this segment an increasingly attractive alternative.
It is worth recalling that Royal Decree-Law 7/2026 not only expanded the scope of shared self-consumption schemes but also introduced measures aimed at improving the competitiveness of electricity consumers. Among these measures is a reduction of up to 80% in grid access tariffs for energy-intensive industries, an initiative designed to alleviate energy costs for sectors exposed to international competition. In this context, collective self-consumption is gaining appeal as a tool for bringing renewable energy generation closer to industrial hubs and consumption centers with high electricity demand.
Therefore, the rise of collective self-consumption is not solely driven by regulatory changes. It also represents a deeper transformation in developers' strategies, as they begin to seek value closer to the consumer and less dependent on the volatility of the electricity market.
" We need to be positive, but we also need to be creative. You can't rely on what's already been done because the reality is that many projects are at risk ," the consultant concluded.
In parallel with this market transformation, ASB Renewables Consulting recently launched ASB Transition Lab , a program designed to support developers, EPC contractors, and IPPs in adapting their business models to the new reality of the renewable energy sector. The initiative aims to help companies diversify revenue streams through strategies related to energy storage, self-consumption, PPAs, balancing markets, and financial restructuring, in a context marked by pressure on margins and the increasing complexity of the electricity market.