In the framework of the public consultation on the capacity market, AEPIBAL is working on key proposals to ensure the competitiveness and sustainability of energy storage.

Long-term contracts are essential to secure the bankability of storage projects, as these technologies have a lifespan of over 15 years.

“Without adequately long contracts, promoters will face difficulties financing their projects. This is a central aspect of our proposals,” says Eugenio Domínguez, Vice President of the association.

In an interview with Energía Estratégica España, he explains that for this mechanism to be truly useful, “it is essential to guarantee contracts of at least ten years and align the criteria with the decarbonization goals of the PNIEC.”

Stress Calculations and Competitiveness

Another key point is the need to perform hourly stress calculations, rather than daily analyses, to determine the critical moments of the electrical system.

“The system’s stress is not distributed evenly throughout the day; it occurs at specific times. This approach will be crucial for maximizing the efficiency of storage,” explains Domínguez.

The competitiveness of batteries against other technologies will also depend on the emission criteria in the capacity market.

In this regard, AEPIBAL is firm: “It is crucial to establish clear emission limits to avoid the mechanism benefiting gas plants and deviating from the energy transition goals.”

They emphasize that batteries and other clean technologies should be the main players, as they offer clear advantages in terms of flexibility and sustainability.

Accelerating Auctions as a Priority

AEPIBAL also supports the acceleration of the main auctions, currently scheduled for 2026. According to Domínguez: “The sooner the capacity market is implemented, the sooner we will see its positive impact. We are working to start the auctions in 2024.”

He also highlights that medium- and long-term auctions represent the best opportunity for batteries, as they offer durability and flexibility compared to conventional technologies nearing the end of their useful life.

Finally, Domínguez thanks the Ministry for Ecological Transition and the Demographic Challenge for meeting the established deadlines and acknowledges that “the continuity in the ministry has been key to advancing this negotiation with Europe. This effort reflects a firm commitment to the energy transition.”

With proposals focused on long-term contracts, competitiveness, and decarbonization, AEPIBAL strengthens its commitment to developing a cleaner and more efficient energy system.

The association’s members will meet in early January to advance a document that defines priorities for energy storage promoters and provide their perspective on the improvements mentioned.