Energy storage took centre stage at FES Iberia 2025, the event organised by Strategic Energy in Madrid, bringing together key industry players to discuss the challenges and opportunities of the energy transition in Southern Europe.
During Panel 5: “Storage and Asset Management,” Sergio Arbeláez, Managing Director Europe & Latam at Matrix Renewables, shared the company’s vision for the strategic role of storage in Spain. The company is already developing a 700 megawatt stand-alone storage pipeline there, as well as in other countries.
The company sees storage as a unique market opportunity, especially in a context where the energy system urgently requires solutions that are reliable, sustainable and cost-efficient. “What we need is energy that is reliable, sustainable and cost-efficient. It’s as simple as that,” Arbeláez highlights.
The key to accelerating storage
Matrix Renewables has had hybrid plants ready since 2023, but has yet to begin construction due to regulatory barriers. “We have not been able to start building these plants because doing so would mean losing the priority dispatch granted to photovoltaic plants,” explains Arbeláez.
Despite these obstacles, the company is determined to move forward. “It doesn’t mean we won’t build. We’ve seen some steps in the right direction, and it’s only a matter of time before we begin installing our first plant,” he assures.
In addition to hybrid projects, Matrix Renewables manages around 700 megawatts of stand-alone storage, which is already at an advanced permitting stage. For the company, developing these projects requires close collaboration with public administrations. “We need to educate the authorities, not just to push for more efficient permitting and shorten timelines, but also to understand the impact these projects will have on the local communities and regions where they’ll be located,” Arbeláez stresses.
From a financial investor’s perspective, the challenge is not only technological development but also long-term economic viability. “No one makes investment decisions involving such significant CAPEX without thoroughly doing the numbers and ensuring the credits are profitable,” the executive emphasises.
Matrix Renewables brings international experience from mature markets like California and the United Kingdom, where it has learned how to operate storage systems with diversified revenue streams. “We’ve gained a lot of knowledge from these markets. We know how to operate batteries and how the revenue stacking should work,” Arbeláez explains, referring to combining income from energy arbitrage, ancillary services, and other complementary mechanisms.
A financial and operational mindset shift
Arbeláez also points out the need to adapt financial models in Spain. “We need clarity on the remuneration scheme. Banks and lenders must understand these new models because they’re the ones providing the fuel to get the market moving,” he notes. According to Arbeláez, discussions with financiers indicate that projects will need at least 50% contracted revenues to secure bankability.
Operating and managing batteries is another crucial aspect. “This isn’t like photovoltaics, where everything is modular. Plants can no longer be ‘dumb’ assets; they need to be smart plants,” Arbeláez warns. To achieve this, Matrix Renewables is investing in internal operational capabilities, avoiding outsourcing this role and maintaining efficient control over asset performance and lifespan.
Active management of these projects will optimise revenues without compromising battery durability. “Every time a battery cycles, it degrades. You need a clear operational strategy because if you can capture 100 instead of 20, it makes sense to do so, as long as it offsets the degradation costs,” he details.
Technological evolution is also a determining factor. According to Arbeláez, the industry is moving towards systems with longer lifespans and higher cycle counts, improving investment returns. Additionally, digitalisation and the integration of management systems (LMS, PPC) are essential to maximise asset value.
Regarding capacity mechanisms, Arbeláez believes they are necessary to kick-start large-scale storage development in Spain. “We need some certainty around remuneration. The capacity mechanism will provide a base level of support—even if small—for our investment cases,” he concludes.
With this outlook, Matrix Renewables is consolidating its position as a key player in the deployment of storage in Iberia, committed to sustained growth and ready to scale operations as soon as market and regulatory conditions allow.
Watch the full panel:
