The evolution of energy storage in Spain not only responds to the need to integrate renewables and decarbonize the electrical system, but also to an economic and regulatory model that guarantees the profitability of plants.

Energy storage already has access to balancing services and electricity markets, but it needs to consolidate new remuneration mechanisms to drive its large-scale deployment.

During the Webinar “Context and Evolution of Energy Storage,” organized by the Ibero-American Institute of Energy Engineers (3iE), Raúl García Posadas, Director of AASEALEN emphasized that the current regulation has allowed storage, in its various forms—daily, seasonal, and behind-the-meter—to participate in all operational markets.

However, there are still nuances in specific procedures, such as voltage control, which is currently under public consultation.

What are the options?

Since the reform of the European Union’s electricity market, approved in May, which introduced non-fossil flexibility mechanisms essential for addressing renewable generation fluctuations, Spain is awaiting regulations for its own capacity market, with expectations for progress in 2025.

One of the most relevant concepts to ensure the profitability of storage plants is the capacity market.

This mechanism analyzes the coverage of generation and demand in future scenarios, identifying capacity gaps or energy shortages.

As García Posadas explained, Spain’s reality in terms of coverage and generation capacity is favorable in the short term, thanks to the current energy mix and existing combined cycle plants.

With over 25 GW of installed capacity projected for 2030 in the National Integrated Energy and Climate Plan (PNIEC), studies show that, under scenarios with at least 24 GW of combined cycles, there are no coverage problems, and the LOLE (Loss of Load Expectancy) remains at zero.

However, the situation changes in scenarios with lower capacity, where LOLE values begin to increase, indicating risks of scarcity.

The Ministry has already confirmed the upcoming implementation, aiming to ensure the economic viability of plants and extend the life of strategic technologies such as hydroelectric pumping.

Renewable Auctions and Additional Incentives

Another profitability avenue lies in renewable auctions that include energy storage requirements. García Posadas highlighted the need to update the renewable energy economic regime (RER) to hybrid generation projects with storage, ensuring an additional incentive that guarantees their viability.

“These mechanisms will be essential to drive mass storage, beyond individual auction projects,” he added.

Behind-the-Meter: Opportunities in Self-consumption and Industry

Behind-the-meter storage represents a significant potential area in industrial and residential sectors.

The ASEALEN executive emphasized the importance of hybridizing batteries with self-consumption to shift solar energy to times of higher demand, especially at night.

Additionally, in sectors with occasional high-power demands, such as electric vehicle charging stations and ports (OPS), storage is the most viable solution to avoid costly grid reinforcements.

“Expanding distribution networks for seasonal or occasional demands does not make economic sense. The best alternative is to combine storage systems with renewable generation,” he argued.

The profitability potential of energy storage in Spain depends on an appropriate regulatory framework and solid economic mechanisms.

Therefore, capacity markets, non-fossil flexibility, and renewable auctions are key elements to ensure the viability of these technologies.

With a projected growth of 19 GW by 2030, energy storage will not only help achieve the PNIEC’s objectives but also make the most of the country’s renewable potential, building a more efficient, flexible, and decarbonized electrical system.