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Today’s newsletter looks at why Spain’s rooftop solar owners weren’t spared from this week’s blackout. You can also read and share this story with your friends and followers on Bloomberg.com. For unlimited access to climate and energy news, please subscribe

Why Spain’s solar owners were in the dark

By Laura Millan and Olivia Rudgard

When the electricity suddenly went out in Spain on Monday, Irene Casas and her husband Luis Morate, who live in a suburb of Madrid, lost power along with everyone else. That’s despite the fact that they, along with their neighbors, own a source of electricity: 200 solar panels on the roof of their apartment building, installed at the end of 2023. 

The panels didn’t help them ride out the blackout because they are connected directly to the grid. Each co-owner, including Casas and Morate and their neighbors, gets a discount on their utility bill in exchange for the power they put into the electricity network, but the panels themselves don’t directly supply their apartments with energy. 

Casas and Morate’s experience goes against what many people would consider conventional wisdom: Solar on your roof provides energy independence. Yet, that’s not always the case. “On principle, solar panels give us power during the day, but in reality we are connected to the grid like everyone else,” said Morate. 

The predicament may have come as a surprise to some of the thousands of Spanish households who now have rooftop solar. The number of installations on homes surged after 2018 when a tax on using energy from panels was canceled. Since then, residential solar capacity has shot up from 300 megawatts to 2,400 megawatts by the end of 2023, according to BloombergNEF data. 

Engineers install solar panels onto the roof of a residential building in Madrid, Spain in 2022. Photographer: Emilio Parra Doiztua/Bloomberg

In most cases Spain’s rooftop solar is connected directly to the grid. Doing it any other way is complicated. To wit: A 181-page government guide details a 17-point pathway for homeowners who want to become energy self-sufficient. 

All of this isn’t unique to Spain. Most solar installations in Europe, even those with batteries, are not equipped with so-called islanding capabilities, which enable them to operate when the grid is down. Instead, the inverter — the device which acts as the brain of the solar system — turns it off the system when the grid is not available. That’s for safety reasons and to allow engineers to work on the grid without encountering live wires. 

It costs more to set up solar panels so they can quickly switch off the grid. Therefore many people living in places with rare blackouts and a reliable electricity supply may decide it doesn’t represent a good return on the cost, says Adam Bell, director of policy at the consultancy Stonehaven. 

“In places where your chances of losing load are very low, like most of Europe and the developed world, then it’s just an extra expense you almost certainly don't need,” he says. 

Candle lit windows in residential buildings during a power outage in Ourense, Spain, on Monday, April 28.  Photographer: Brais Lorenzo/Bloomberg

For some residents in rural areas of Spain, going through the trouble of having off-grid energy supply was worth it. 

Carlota Sala, who lives on a century-old farm in Spain’s northeastern region of Catalonia, didn’t even realize the Iberian Peninsula was in the middle of a historical blackout until many hours into the outage. Sala, a 45-year-old mother of five who is a well-known speaker on maternity and childhood issues under the nickname Ninyacolorita, lives entirely off-grid, with solar panels and batteries that store power so the family can use it during the night as well.

“We heard about [the blackout] when a message from a friend came through, many hours after she sent it,” Sala said. “We went into the internet to look it up and my teenage sons couldn’t believe everyone was offline.”

When Sala’s family moved away from Barcelona, Spain’s second-largest city, over a decade ago, they felt the urban lifestyle was hostile and were looking to reconnect with nature.

The power outage this week has only reinforced her family’s choice to be energy independent, she said.

“Being self-sufficient in your daily life gives you a sense of physical and emotional autonomy,” Sala said. “It impacts your self-esteem, it puts you in a powerful position where you feel you can make your own choices.”

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This week we learned

  1. The COP30 president sees an “uphill battle.” Following the US’s exit from the Paris Agreement, André Corrêa do Lago said this year’s challenge will be to convince countries that the future of their economies lies in embracing the climate transition.
  2. It’s possible to quantify climate damages by oil majors. A recent paper published in the journal Nature demonstrated how to quantify the climate damages caused by each of the world’s biggest oil and gas companies. Those calculations could be brought as evidence in court.
  3. Finance bosses are having buyers remorse on ESG hires. After having “overhired in a very evangelical and philosophical way,” many financial companies are now avoiding some of the ESG profiles they targeted just a few years ago, said Tom Strelczak, a partner focused on sustainability at Madison Hunt.
  4. Investing in climate adaptation is surprisingly rewarding. Over a one-year time horizon, investors exposed to adaptation solutions stand to get total returns that are 13.5% higher than those on mitigation strategies, according to recent analysis.
  5. Two coffee pod makers must change their green labeling. Lavazza and Dualit will no longer be able to advertise their products as “compostable,” a UK advertising regulator said. That’s because they can only be composted in industrial facilities — consumers can’t compost them at home.
Terms like “compostable,” “biodegradable” and “recyclable” lack official definitions in the UK. Photographer: PapillencePhoto/iStockphoto

Worth your time

Daily life increasingly depends on systems of satellites orbiting Earth. As fleets proliferate, ever greater numbers of expired units will hurtle back toward the surface. Decommissioned satellites vaporize when they plunge through the atmosphere, decomposing into their elements, mostly aluminum, with some copper and lithium. That’s changing the atmosphere in ways that threaten the Earth’s protective ozone layer. Read this week’s Big Take on how the satellite industry boom could exacerbate the effects scientists have already observed.

Photographer: VW Pics/Universal Images Group Editorial

Weekend listening

This week Canadians elected Mark Carney, leader of the Liberal party, to be their prime minister. Carney is a newcomer to politics, but is well known in international finance and climate circles, running both the Bank of Canada and the Bank of England, and founding the Glasgow Financial Alliance for Net Zero (GFANZ). Canada is far from reaching its legally mandated goal to achieve net zero by 2050, and has one of the highest emissions per capita of anywhere in the world. Now Carney has been elected, can he translate his international climate leadership into domestic policy, or will climate fall by the wayside as he fortifies Canada against a trade war with the US?

Bloomberg Green senior reporter and former Toronto Bureau Chief, Danielle Bochove, joins Zero to discuss. Listen now, and subscribe on AppleSpotify, or YouTube to get new episodes of Zero every Thursday.

Mark Carney Photographer: David Kawai/Bloomberg

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