A paradigm shift in the energy sector
Hybridization—the integration of different generation sources with Battery Energy Storage Systems (BESS)—has become an increasingly relevant global trend. <u>Nowadays</u>, projects are no longer limited to standalone solar or wind plants; instead, hybrid infrastructures are being deployed that can generate, store and manage energy according to demand.
By 2030, a very significant percentage of new photovoltaic plants is expected to be built as hybrid installations (solar + BESS). Hybridization has evolved from a technological option into a central component of the energy transition.
Hybridization has evolved from a technological option into a central component of the energy transition
International Landscape: Australia, the U.S., India and China Lead the way
The acceleration of hybrid projects is particularly visible in Australia and the United States, where regulatory frameworks and grid conditions drive solar-BESS integration. In Europe, the most advanced regulatory environments are found in Italy and the United Kingdom, which are setting examples for other markets.
In Australia—an international benchmark for hybrid innovation—some of the world’s most ambitious projects are underway. According to the Australian Energy Market Operator (AEMO) Integrated System Plan 2024, the National Electricity Market (NEM) will require approximately 36 GW / 522 GWh of storage capacity by 2034–2035, increasing to about 56 GW / 660 GWh by 2049–2050 to support the country’s transition to a renewables-based electricity system. Current storage deployments, although growing rapidly, still represent only a fraction of these projected requirements.
AEMO regards hybridization as a critical component of new investments—especially for utility-scale solar and wind farms—although it does not explicitly allocate a percentage between hybrid and stand-alone projects in the published targets. The report notes that most short- and medium-duration storage is expected to come from hybrid installations and that hybridization will play an increasing role in decarbonization and variability management.
Overall, Australia has found in hybridization an effective solution to its major challenges: spanning long transmission distances and ensuring a stable supply following the retirement of coal-fired power plants.
Australia has found in hybridization a solution to its major challenge: spanning the vast distances of its electrical grid and ensuring a stable supply.
In the United States, hybrid systems have expanded in part due to the Inflation Reduction Act (IRA), which provides a base 30% tax credit with additional bonuses for projects that integrate solar and storage. The U.S. Energy Information Administration (EIA) projected for 2024 approximately 36.4 GW of new solar and 14.3 GW of new storage—creating substantial potential operational hybrid capacity and multiple GW in the interconnection queue. In states such as California and Texas, hybrid plants already participate in frequency regulation, fast-reserve markets and overnight energy supply.
In California and Texas, hybrid plants already participate actively in frequency regulation markets, fast-reserve markets, and overnight energy supply.
China y India también están avanzando con fuerza. India, por ejemplo, ha experimentado, por segundo año consecutivo, un crecimiento récord en la capacidad de almacenamiento. Las licitaciones emitidas en 2024 crecieron un 25% con respecto a 2023, y los sistemas híbridos de energía solar-eólica y almacenamiento de energía representaron casi la mitad de los 73 GW de capacidad licitados en 2024, lo que consolida su papel como laboratorio mundial de la integración a gran escala.
China and India are also advancing rapidly. India, for example, has recorded a second consecutive year of record growth in storage capacity. Tenders issued in 2024 increased by 25% compared with 2023, and hybrid solar–wind–energy-storage systems accounted for nearly half of the 73 GW tendered in 2024—consolidating India’s role as a global testbed for large-scale integration
India consolidates its role as a global testbed for large-scale integration
China‘s leadership in storage systems is recognised both in installed capacity and in manufacturing and supply chains. In January 2025, the National Energy Administration (NEA) reported that the country’s installed new-energy storage capacity rose to 73.76 GW / 168 GWh by the end of 2024—about twenty times the level at the end of 2021. Compared with 31.39 GW / 66.87 GWh at the end of 2023, this represents an annual growth rate exceeding 130%.
Although the NEA does not provide a specific figure for ‘solar–wind–BESS hybrid systems installed’, storage mandates and provincial requirements increasingly require large-scale wind and solar projects to include co-located BESS (commonly between 5% and 20% of generation capacity). The rapid growth in cumulative storage capacity (73.76 cumulative GW) is thus a direct indicator of the substantial volume of hybrid and co-located renewable projects that have come online, as storage is an essential requirement for grid connection.
Europe adopts hybridization as a pillar of grid stability
In Europe, Directive (EU) 2023/2413 (RED III) strengthened the minimum renewable energy target to 42.5% by 2030 and recognises energy storage as an essential system component. Grid-forming requirements—the ability of inverters to control voltage and frequency while emulating synchronous generators—are emerging in markets such as Germany and Spain, representing a decisive step towards more resilient grids with high renewable penetration.
European funding mechanisms are prioritising hybrid projects
European funding mechanisms are prioritising hybrid projects. Hybrid plants provide clean energy as well as flexibility, fast response and virtual inertia—services that become crucial in systems with high solar and wind penetration.
Spain: from solar powerhouse to hybrid reference
Spain, a European leader in photovoltaic generation, is undergoing a transition toward hybridization. With more than 25 GW of installed PV capacity (certified by Red Eléctrica Española at the end of 2023 and surpassing 28 GW by October 2024), the integration of storage is critical to fully utilise generated energy.
In some regions, renewable curtailment is significant—ranging from around 10% to more than 30% at peak times—highlighting the added value of dispatchable storage, although these figures vary regionally and require local context.
The new capacity market foreseen for 2026 will remunerate the availability and flexibility provided by hybrid plants. Furthermore, Royal Decree 7/2025 has simplified permitting for projects with storage and officially recognises the concept of ‘co-located hybrid systems’, facilitating new developments and retrofits.
Hybrid installations exceeding 200 MWh are already under construction or in planning in regions such as Castilla–La Mancha, Extremadura and Castilla y León. Several independent power producers are implementing retrofit models—adding storage to existing PV plants—to reduce curtailment and increase revenue.
Hybridization opens new industrial opportunities
Hybridization opens new industrial opportunities: domestic power-electronics manufacturers, integrators and local developers are positioning themselves as key players in the emerging storage value chain. As an example, the production of a 4,500 kW PCS at ZGR Corporación demonstrates local manufacturing capability.
ZGR: power electronics for the new hybrid era
At the heart of this transformation lies power electronics—the core enabling intelligent energy management. ZGR Corporación provides advanced technological solutions that integrate generation, storage and grid control under unified and efficient management.
ZGR’s central inverters (CTR 3000/4500) and bidirectional ZGR PCS (3000/4500) are designed for high-voltage architectures—now up to 1,500 V DC and planned up to 2,000 V DC—and deliver efficiencies above 98%. They support grid-forming operation modes, optimised cooling systems and scalable designs.
These capabilities position ZGR solutions at the technological forefront for hybrid PV/wind + BESS systems, contributing to a more stable, flexible and resilient grid. They reflect ZGR’s differentiating attributes: high reliability, operational flexibility and productivity.
How hybridization transforms efficiency and economics
Economically, the Levelized Cost of Energy (LCOE) and the Levelized Cost of Storage (LCOS) are declining rapidly. Revenues from hybrid projects diversify through energy arbitrage, grid services (such as frequency regulation and virtual inertia), capacity payments and peak-shaving—providing multiple monetisation pathways.
Hybrid architectures: flexibility and intelligent control
Hybridization is typically implemented in two principal architectures:
- AC-coupled: More suitable for adapting existing plants. In this configuration, the PV system and the BESS use independent inverters and connect to the grid on the AC side.
- DC-coupled: Optimal for new low-power, residential and commercial & industrial (C&I) systems. The PV array and the BESS share a common DC bus, reducing conversion stages and losses—thus improving overall energy efficiency.
The ZGR equipment described is equipped with bidirectional control and compatibility with advanced Energy Management Systems (EMS) and Supervisory Control and Data Acquisition (SCADA) platforms. Plants can optimise solar production, store excess energy and participate actively in electricity markets, responding to grid signals in milliseconds.
Innovation and sustainability: Drivers of the new hybrid generation
Beyond efficiency, hybridization fosters industrial innovation and sustainability. It enables reuse of existing infrastructure, reduces the need for additional evacuation lines and minimises environmental footprint.
The incorporation of intelligent management algorithms, remote monitoring and advanced cybersecurity converts hybrid plants into digital energy systems—where hardware and software collaborate to maximise the value of the solar resource.
ZGR directs its technological development toward this convergence, offering solutions that integrate control, power and communications, adaptable from industrial microgrids to utility-scale plants while maintaining high levels of efficiency and reliability.
Challenges and outlook toward 2030
Challenges remain: alleviating grid congestion, streamlining permitting and further improving regulatory frameworks. Nevertheless, the outlook is strong.
Según el informe de la International Energy Agency (IEA) Batteries and Secure Energy Transitions, la capacidad global de almacenamiento (incluyendo baterías) debe incrementarse hasta aproximadamente 1.200 GW para 2030, lo que implica un crecimiento exponencial frente a los niveles actuales.
According to the International Energy Agency (IEA) report ‘Batteries and Secure Energy Transitions’, global storage capacity (including batteries) must expand to approximately 1,200 GW by 2030—implying exponential growth relative to current levels.
The deployment of grid-forming technologies and the continuous cost reduction of batteries will consolidate the hybrid model as the standard solution
The deployment of grid-forming technologies and the continuous cost reduction of batteries will consolidate the hybrid model as the standard solution. For Spain and Southern Europe, with high solar irradiation and a mature transmission system, the opportunity is to convert installed renewable capacity into dispatchable, manageable power through hybridization and advanced power electronics.
Hybridization as the new standard of the energy transition
Hybridization represents the evolution from conventional renewable generation to a truly dispatchable model. It is the technological response to intermittency, stability and economic challenges in the 21st-century power system.
Hybridization represents the evolution from conventional renewable generation to a truly dispatchable model
With the development of high-power inverters, bidirectional PCS and intelligent architectures—such as the ZGR CTR 3000/4500 and PCS 3000/4500—the sector enters a new phase where generation and storage are inseparable.
By 2030, hybrid solutions are projected to form the backbone of the modern electricity system: cleaner, more flexible and more resilient. Hybridization is not the future of energy; it is its most advanced present.
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References
- International Energy Agency (2025).
- International Energy Agency (2024).
- Monaghan, T. (2024, August 22). Battery Storage: Australia’s current climate. Australian Energy Council.
- European Commission. (2023). Directive (EU) 2023/2413 on the promotion of renewable energy. Official Journal of the European Union.
- Red Eléctrica de España (REE).
- Rocky Mountain Institute (RMI) (2025). The Energy Transition in 2025: What to Watch For.
- GridBeyond (2024). IEA calls for sixfold growth in energy storage capacity.
- ESS News (2025). China’s new energy storage capacity surges to 74 GW/168 GWh in 2024, up 130% YoY.
- PV Tech. India tenders record 7.3 GW utility-scale renewables as challenges arise.
