Spain is preparing for a significant shift in its energy system with the implementation of the capacity market. This mechanism will allow storage units to receive compensation for their availability to stabilize the electricity grid.

Luis Marquina, president of AEPIBAL, explains that the process is moving toward realization: “We expect the first tender to take place during the first six months of 2025, according to estimates from the Ministry.”

This market is crucial to ensuring stable and predictable income for storage operators, something the energy sector has been calling for years.

“The goal is for storage to have stable, long-term revenue just by being available when the system requires it,” emphasizes the executive in an interview with Energía Estratégica España.

This model aims to encourage investment in storage, essential for integrating greater proportions of renewable energy into the energy mix, especially after the resolution of the stand-alone storage PERTE, which has shown great interest from developers.

However, the development of the capacity market is not without challenges, particularly in negotiations with the European Commission.

In this regard, Teresa Ribera, candidate for Commissioner for Energy and Competition, could play a decisive role. “Her appointment would be a trigger to accelerate these processes,” says Marquina.

However, Ribera’s candidacy faces political obstacles in the European Parliament, which could delay her confirmation, with strong opposition from the European People’s Party.

Nevertheless, regardless of the outcome, the AEPIBAL leader emphasizes that it is essential for Spain to maintain a firm and consistent position in defending its energy interests and promoting storage.

From Brussels to Madrid: the next regulatory steps

Although Brussels must give its final approval to the capacity market scheme, Marquina clarifies that the main process will be in Spain once the European Commission gives the green light, adding: “The draft decree is already written, and the Ministry has the capacity to implement it quickly after European approval.”

Once the draft is approved by the European Commission, the local administration will need to publish the decree for public consultation, go through the objections process, and carry out the first tender.

“The estimated time to complete the process in Spain is between a month and a half and three months, depending on the urgency the government assigns to the mechanism,” describes the executive.

Outlook for 2025: regulation and optimism in the sector

Looking ahead, Marquina is optimistic about the attitude of regulatory bodies and the sector’s potential: “If we manage to close the circle with effective regulations, storage in Spain could become a strategic pillar of the energy transition.”

He also adds that the publication of the available storage capacity by Red Eléctrica, scheduled for December this year, will be a key step in providing clarity and transparency to the market.

The regulatory development expected for 2025 includes essential measures such as the approval of the demand circular, which will establish a detailed regulatory framework to promote flexibility in the energy system.

Luis Marquina highlights that this document will include essential specifications to ensure the efficient integration of electrical storage, a process that could extend until the end of next year. At the same time, the growing energy demand emerges as a strategic challenge, with three key pillars: attracting new technological industries, decarbonizing processes in electro-intensive industries, and accelerating the adoption of electric vehicles.

“We see all regulatory bodies aligned in giving storage the importance and optimal structure for it to function properly, so I think this has been very important,” he concludes.