The sector is eagerly anticipating new regulations on energy storage, such as the capacity mechanism and the new methodology proposed by the National Commission for Markets and Competition (CNMC).

Ángel Gómez Vallejo, Head of Business Development at Solek Holding SE, analyzes the storage sector and points to long-term Contracts for Difference (CfD) as one of the main drivers to boost its growth.

“I advocate for a public auction system like CfD, as is happening in most European markets launching batteries through this model. A long-term contract that provides income stability to ensure the bankability of projects,” says Gómez Vallejo in an interview with Energía Estratégica España.

“For large-scale batteries to be built, a market model with long-term contracts ensuring a minimum income is necessary. I believe we are entering a dynamic where the market’s own competitiveness will likely make CfDs unnecessary for public funding, requiring only state support as a long-term offtaker,” he adds.

Another key factor the executive highlights for driving the sector forward is creating access to distribution and transmission grids for battery projects, in addition to the capacity mechanism.

The methodology proposed by the CNMC considers access to connection points. However, Gómez Vallejo points out that this measure is provisional, which “could cause many problems.”

“As written in the initial proposal under discussion, it states that the access granted is provisional and could be revoked. No one will invest millions of euros in a connection point if the access does not have a minimum period for amortization,” he emphasizes.

PERTE Aid

It is worth noting that last Friday, the Provisional Resolution for the first call for aid to independent energy storage projects (BESS) was published.

Regarding this topic, the specialist states: “I don’t think this is the best way to support the sector. I am convinced that this money would be better invested in a CfD auction to support the long-term operation of batteries.”

“This is being done in other countries, even for hydrogen. Instead of providing direct CAPEX aid for new hydrogen projects, there are public auctions where a certain amount of tons is offered to be purchased at the resulting price, making companies more competitive,” he adds.

Social Acceptance of Projects

Gómez Vallejo highlights that another pillar of the sector is raising awareness about the projects and the benefits of storage to avoid conflicts and social rejection, such as what is happening in Asturias.

The conflict in the Asturias region over battery storage regulation highlights the tensions between the progress of the energy transition and social resistance. The Principality has initiated a process to enact regulations establishing minimum distance restrictions for the development of parks.

“The role of media outreach, driven also by UNEF, is crucial to prevent situations like the one in Asturias, where inaccurate data about a technology is fabricated, leading a region to pass a decree that halts any processing,” says the Solek Holding SE representative. He emphasizes: “We shouldn’t have to constantly debunk every false claim that emerges. That’s why awareness campaigns are so important.”

Additionally, the executive compares the current situation in Asturias to that of Catalonia and Valencia, where “there has been a political unwillingness to allow renewable energy projects.”