Hybrid Horizons: Co-Location in Europe - Trends, Policy, and Business Models

Recording of Tuesday, June 23, 2026 | The smarter E Europe Conferences 2026 | Language: English | Duration: 15:55 .

Trends and Strategies for Co-location in Europe

Co-location in Europe is gaining momentum, with significant growth in co-located renewable energy and battery storage systems, projected to leap from 2 gigawatts in 2023 to 6 gigawatts by 2025, potentially exceeding 35 gigawatts by 2030. Key players in this market include the UK and Germany, with Spain, Bulgaria, Hungary, and Finland also advancing through successful auctions. Co-location offers advantages such as cost savings in inverters and reduced balance of system expenses while mitigating grid congestion and improving access, addressing issues like lengthy grid queues. Various business cases for co-location are identified, including virtual hybrid projects and different configurations for DC and AC setups. Important market drivers include regulatory policies that boost investor confidence and facilitate growth in new markets like the Baltic regions and Southern Europe. However, challenges such as inverter losses, asset over-sizing, and the evolving nature of market dynamics—including negative pricing and curtailment rates—require careful management. Overall, a strategic approach to co-location can optimize energy production and enhance the sustainability of energy projects across Europe.

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Speaker

Rebecca McManus
European Renewables Lead Expert
Aurora Energy Research
Germany

Talk of session: Solar Power Plants and Storage IV: Going Hybrid - Overview of Real-World Revenue Models for Solar + Battery Projects

Hybrid PV projects are transforming Europe's utility-scale solar sector. As battery sizes grow and grid constraints intensify, co-location and hybrid operation are becoming the key to accessing the grid and unlocking new value streams - from merchant optimization to industrial energy supply. This session examines real-world revenue models, policy trends and grid-forming requirements,providing background on how hybrid projects truly pay off.

This session will address:

Business cases for co-location, overplanting and shared grid connections of hybrid solar plants
Grid-forming and related services with regulatory drivers shaping hybrid economics
Revenue-stacking strategies in merchant and contracted markets
Industrial optimization and storage-led value creation in practice

Further Talks of this session: