Why French energy startups are packing their bags for Spain ?

© Unsplash/American Public Power Association

More and more French startups operating in the energy sector are launching Spanish subsidiaries. Regulations, climate, economy… It is the result of a cocktail favorable to their growth that is pushing them in this direction. Explanations.

Favourable regulations

Hello Watt, which allows you to track your consumption through an application, has just opened an office in Valencia, reports Les Échos. It is following in the footsteps of Feedgy, a specialist in the renewal of photovoltaic power plants, which has also launched in the Iberian Peninsula. Atawey and Mylight150, respectively developing hydrogen terminals for land mobility and solar energy equipment, are also present on this market.

The photovoltaic panel recycler Rosi Solar is preparing to set up its own industrial site there next year. This influx of young French companies to our southern neighbours is no coincidence. First of all, because the climate is, logically, very favourable to renewable energies, particularly solar. However, the market for photovoltaic panels in private homes is still underdeveloped, offering interesting opportunities for young companies in the sector. Especially since the tax on solar self-consumption was abolished in 2018.

In addition, the regulatory framework is more advantageous and open than in France, where it is very difficult to penetrate. Added to this are several initiatives put in place by the Spanish government to promote the startup ecosystem, particularly in the energy sector.

Thus, the country, the fourth largest economy in the eurozone, aspires to become a major magnet for investment and innovation. It has simplified administrative procedures for foreign investors, and deployed favorable measures aimed at attracting and retaining international talent.

© Unsplash/Vivint Solar

Great ambitions in renewables

Spain also has great ambitions in renewables. The government has set itself the goal of having 81% of its energy mix come from renewables by 2030.

Similarly, the hourly pricing of electricity in Spain, where the price of kWh fluctuates every hour according to the market, creates a strong demand for solutions that allow consumers to monitor and optimize their energy consumption, such as that proposed by Hello Watt.

Another factor that should not be overlooked is the cost of labor, which is lower than in mainland France. The minimum wage is set at around 1,200 euros net in the Iberian country. An important element when we know the need to hire locally, particularly for everything related to sales.

• More and more French energy startups are setting up in Spain.
• The market is more open than in France and offers many opportunities, particularly in renewables.
• The Spanish government has recently implemented measures to promote the startup ecosystem and foreign investment.

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