The future of energy storage became one of the central themes at the Future Energy Summit (FES) Iberia 2025, held in Madrid. Speaking during the panel dedicated to this technology, Ignacio Guerra, Head of BESS Business Development Europe at Lightsource bp, highlighted the main regulatory bottlenecks holding back faster deployment of battery systems in Spain’s power grid.
From his strategic role, Guerra described a paradox currently facing the sector: while companies already have ready-to-build projects, the regulatory environment still lacks clear definitions. He criticised the fact that storage is still treated as conventional demand, which limits both system design and operational efficiency. “Today, when requesting demand capacity for storage operation, it is treated as inflexible load. That should have been corrected from the start,” he stressed.
The bp-owned company already has operational storage assets in Europe. These include the Tiln Farm project in the UK (25 MW/50 MWh) and Pentir Energy Storage in Wales (57 MW/228 MWh). It is also advancing development of Ballygammane in Ireland, an 80 MW/320 MWh facility offering four hours of duration. Additionally, new ventures are underway in Spain and Portugal, where Lightsource bp plans to deploy 500 MW of hybrid projects during 2025.
These figures reflect a proactive, expanding strategy that goes beyond arbitrage to encompass ancillary services, grid resilience and fully integrated renewable-storage models. According to Guerra, storage has become a structural technology, but its full integration still faces regulatory delays. “We are investing in storage, but taking a lot of risk that needs to be justified to investment committees. We’ve been waiting for years for resolution,” he stated.
One of the critical issues is access to demand capacity and the use of duplicated connection points (DUP), which still lack legal certainty. This is compounded by the absence of bankable business models. “The traditional closed PPA model no longer exists. Banks also need to adopt a more open and flexible attitude to enable business,” the storage lead emphasised.
The political context is now crucial. On 25 June, the Spanish Government approved Royal Decree-Law 7/2025, recognising storage as strategic infrastructure, granting access to balancing markets and simplifying grid connection procedures. However, the decree still requires ratification in Parliament before 25 July. The vote is scheduled for the 22nd, and a rejection could invalidate key measures that currently underpin the investment case for companies like Lightsource bp.
In this context, Guerra argued that lack of long-term visibility and regulatory delays jeopardise project viability. “If the permitting process takes two years and the market shifts before completion, you miss the window. If your payback jumps from five to ten years, the project becomes unviable,” he explained.
In his view, storage must behave like a flexible generation asset—selecting when to operate, accessing different markets, and responding to price signals. To achieve this, a regulatory framework aligned with project timelines is essential. “We’re already here, with developed projects. But we’re still waiting for a regulatory framework that recognises storage for what it is: a vital technology for the future electricity system,” he concluded.
