MUNICH, July 16, 2026 -- In his speech at the industry convention in Munich, President of Smart PV & ESS Product Line, Huawei Digital Power, Steven Zhou, said the company's strategic focus on grid-forming, integrated solutions that reinforce grid stability to support high renewable penetration in Europe.
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 declining share of traditional synchronous generators.
In response, European markets are increasing grid investment, scaling up grid-forming BESS deployment, developing new grid codes that include grid-forming requirements, and accelerating the shifting of power market from simple energy arbitrage to diversified grid ancillary services. In his speech at The Smarter E 2026, President of Smart PV & ESS Product Line, Huawei Digital Power, Steven Zhou, said these actions send a clear signal that "future PV and BESS products must evolve to become primary power source."
As new energy technologies have developed into a primary power source, the industry has entered a period of active innovation, transitioning from single-point innovation to integrated innovation. Thanks to their grid-forming capability, hybrid PV-BESS solutions are accelerating the replacement of traditional thermal power plants. 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, with the technical system becoming increasingly refined.
In his speech, Zhou recounted how Huawei's strategic direction developed in response to the evolution of the grid. "Back in 2020, we introduced LUNA, the industry's first smart string energy storage system," said Zhou. "Named after the moon, LUNA was designed to watch over the night, ensuring that clean power no longer ends at sunset. And as you know, our solar inverter is named SUN. Rooted in the sun, it powers the day." 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. "LUTERRA draws its name from 'Terra' – the Earth. We are moving from lighting up the night, to protecting our planet."
Tying into the company's new Smart PV Strategy, Huawei is leveraging its advantages in the integration of 4T (Bit, Watt, Heat, Battery) foundational technologies to continuously innovate, with the goal of accelerating the construction of a modern power system, including solutions for all user segments and scenarios. In his speech at The Smarter E 2026, Zhou also detailed highlights of C&I projects in Europe using the company's one-fits-all solution that integrates PV, BESS, EV chargers, and AI scheduling. For example, in Germany, AHS business park has achieved a 10% increase in revenue after just two years of operation of a Huawei one-fits-all solution, and in Spain, Zhou noted, "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 explained, "In the future, the business models for BESS will become more diversified… Based on flexible hardware and software evolving capability, Huawei's one-match-all platform can adapt to all different business models and maximize benefits."
With demonstrations across the world – from Spain to Mongolia, and Germany to the Philippines – proving the value proposition of Huawei's grid-forming technology, Zhou says the company's core competences "will empower our full-scenario Smart PV and BESS solutions, to bring maximum value for our customers while reinforcing grid stability in high renewable penetration."
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