Is the flexibility gap holding back Europe’s energy transition?

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Renewable build-out is accelerating, driven by record levels of solar deployment and shifting system needs. But as generation scales, the system’s ability to manage volatility isn’t keeping pace. Markets across the globe are experiencing deeper price swings, more frequent negative prices, and growing operational complexity all pointing to one issue: the flexibility gap.

In this episode of Transmission, Dario Hernandez, Head of Energy Storage at NextEnergy Capital, breaks down why flexibility has become the defining challenge for the energy transition.

Over the conversation, Dario explores how storage, co-located solar-plus-storage projects, and smarter market design are essential to maintaining system stability as renewable penetration rises. He explains what’s driving volatility, where markets are falling behind, and why places like Europe are entering a crucial phase that will determine the long-term resilience of its power system. The discussion unpacks how investors, operators, and policymakers can close the flexibility gap and unlock the value needed to support a high-renewables future.

Key topic covered include:

- How Europe’s rapid solar growth is outpacing the flexibility needed to stabilise the grid.

- Why market volatility is making fast-response flexibility more valuable than ever.

- How outdated market designs and regulatory frameworks are slowing investment in flexibility.

- The role battery storage will play in managing solar-driven price swings and balancing the system.

- What reform is needed to accelerate flexibility deployment and close the system gap.

About our guest:

Dario Hernandez is Head of Energy Storage at NextEnergy Capital where he focuses on power markets, flexibility, and the role of storage in supporting the energy transition.

NextEnergy Capital is a leading international investment and asset management platform specialising in solar and renewables infrastructure. Learn more on their website: https://www.nextenergycapital.com/

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