In Europe, the penetration of wind and solar is expected to reach 64% by 2030. At the same time, the power system is facing challenges – such as reduced grid resilience and weakened system strength – due to high dispatching complexity and the decline of traditional synchronous generators.

In response, European markets are increasing investments in grids, scaling up grid-forming BESS deployment, developing new grid codes that include grid-forming requirements, and accelerating the shifting of the power market from simple energy arbitrage to diversified grid ancillary services.

Speaking at the recent Smarter E 2026 industry convention in Munich, Steven Zhou, president of the smart PV & ESS product line at Huawei Digital Power, said these actions send a clear signal that “future PV and BESS products must evolve to become primary power source.”

The industry has entered a period of active innovation, thanks to new energy technologies that have developed into a primary power source. They have transitioned from single-point innovation to integrated innovation. Because of their grid-forming capability, hybrid PV-BESS systems are accelerating the replacement of traditional thermal power plants, Huawei said. Key grid-forming functions – such as black start, inertia support, and short-circuit current support – have been fully validated under all operating conditions and timeframes in the power system, while the technical system is becoming increasingly sophisticated.

Zhou said the role of energy storage has been redefined to guarantee the stability of the entire grid and announced that Huawei has officially upgraded the LUNA brand to LUTERRA, which “draws its name from ‘Terra’ – the Earth,’’ he said. “We are moving from lighting up the night, to protecting our planet.”

To enhance the company’s new smart PV strategy, officials are leveraging the integration of 4T (bit, watt, heat, battery) foundational technologies to stay ahead of the curve, with the goal of accelerating the construction of a modern power system, Zhou said, including platforms for all user segments and scenarios. In his speech, he recounted how Huawei’s strategic direction was developed in response to the evolution of the grid with the company’s introduction of LUNA in 2020.

Also during his speech, Zhou detailed highlights of C&I projects in Europe using the company’s one-fits-all system that is designed to integrate PV, BESS, EV chargers, and AI scheduling. For example, in Germany, AHS business park using the system has achieved a 10% increase in revenue after just two years of operation of a Huawei one-fits-all system, according to Zhou. And in Spain, he said, “the electricity bill of a Carrefour supermarket is reduced by almost 40% and the payback period is only five years.”

Huawei is positioning itself for the evolution of the electricity market, Zhou said. Noting that “In the future, the business models for BESS will become more diversified,’’ he said that with Huawei’s flexible hardware and software evolving capability, “the one-match-all platform can adapt to all different business models and maximize benefits.”