When grid stress becomes a term-sheet question
Spain’s grid operator activated emergency demand-response for the third time this year on Wednesday night — asking large industry to cut load as a wind drop met a late-summer heat spike. It was the second such call in a single week.
That is no longer an anomaly; it is a data point. The system now has 1,775 MW of active demand-response capacity on call for the second half of 2026, and a newly EU-approved €9 billion capacity mechanism is being built specifically to keep resources like this — and storage — available when the wind isn’t there.
From the M&A side of our business, this changes what a term sheet has to answer. Buyers underwriting a wind, solar or storage-hybrid asset are no longer only pricing the resource; they’re pricing its behaviour on the three or four nights a year when the system is short.
Running a competitive process for a renewable or hybrid cluster increasingly means demonstrating that dispatchability upfront, not leaving a buyer to find it in diligence.
Assets that can point to a credible flexibility or storage component are starting to clear processes faster — and, we’d argue, at a better price.
Is the market pricing flexibility correctly yet, or is it still catching up with the fundamentals?
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