Spain
November 25, 2024

They warn that the PERTE storage aid is at risk due to delays in project execution.

The energy storage sector expresses concern about the possibility of not completing installations before the NextGeneration funds must be returned in 2026, following a year-long wait for the final resolution and administrative delays.
By Milena Giorgi

By Milena Giorgi

November 25, 2024
La propuesta del mercado de capacidad bajo la lupa Advierten que las ayudas del PERTE de almacenamiento corren riesgos por retrasos en la ejecución de proyectos

The energy storage PERTE, funded by Next Generation EU funds, is at the center of the sector’s concerns due to tight deadlines and administrative challenges faced by selected projects.

According to Andrés Pinilla Anton, Head of BESS Sales Iberia at Mars Renewable Iberia, the risk is significant. In a conversation with Energía Estratégica España, he states: “We know the timeline for developing these projects is very tight, and many companies will not be able to complete them due to administrative hurdles.”

The program allocated a total of €150 million for 690.2 MW of capacity across 35 stand-alone systems. However, delays in granting permits could jeopardize these figures.

“The Administration took a year to resolve the call, and now many companies won’t have enough time to complete the development phases,” Pinilla adds.

The greatest challenge lies in the nature of the European funds, which must be utilized by June 2026.

“If the deadlines are not met, the funds will have to be returned to Europe, potentially leading to the loss of up to half of the €150 million allocated to energy storage,” warns Pinilla. He also notes that with the year the government took to publish the final resolution, combined with processing time, uncertainty continues to grow.

Externalities: A Controversial Criterion

The externalities criterion, which considers non-economic aspects such as local impact and community participation, generated controversy during the selection process. According to Pinilla, this factor was pivotal for many projects but also introduced subjectivity into the evaluations.

“The issue is that, being subjective, externalities penalized many developers who didn’t meet the minimum of six points required to be selected,” he explains.

While the criterion aims to promote positive impacts in local communities, Pinilla suggests implementing more objective indicators. “It would be ideal to request specific documentation, such as agreements with universities or contracts with local companies, to ensure the impact is genuine and equitable,” he proposes.

Despite these challenges, the market shows signs of optimism due to a 60% drop in storage system prices since October 2023.

This trend could facilitate the economic viability of future projects, both stand-alone and hybrid.

“With this trend, upcoming projects will be more profitable, opening a window of opportunity for the sector,” Pinilla concludes.

The final PERTE list included 48 projects, leaving out over 100 initiatives due to technical or documentary non-compliance. It can be said that the sector has learned valuable lessons for future calls. The government also emphasizes that “the market’s maturity has improved significantly, and all stakeholders now have a clearer vision of what is needed to develop solid projects.”

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