Spain
October 29, 2024

Luis Marquina: Spain must strengthen its battery industry as a strategic technology

The President of AEPIBAL emphasizes the importance of a strong battery sector in Europe, noting that batteries are strategic technology for the continent. The organization has presented 10 key proposals to improve the regulation of distributed storage and ensure that Spain strengthens its battery industry.
By Milena Giorgi

By Milena Giorgi

October 29, 2024
Almacenamiento, ayudas AEPIBAL Luis Marquina flexibilizar la demanda Desde AEPIBAL remarca que los retos son legislativos para cumplir con las cifras del PNIEC. España debe potenciar su industria de baterías como tecnología estratégica Mercado de capacidad almacenamiento

The organization has put forward various proposals to consolidate the sector, covering issues ranging from the fiscal framework to the integration of distributed storage and the creation of a solid supply chain in Europe.

“If we want to have an industry made in Europe, our own industry, we must strengthen certain aspects,” says the executive in dialogue with Energía Estratégica España. He emphasizes the need for regulatory measures and specific incentives to boost self-consumption.

The development of the battery industry in Spain and Europe is a strategic priority.

“Batteries are classified as strategic technology and will receive the utmost protection from the European Union,” Marquina indicates, stressing the importance of financial backing through European funds such as the Draghi plan. In this regard, Marquina emphasizes that “this protection must be accompanied by sufficient funds” to maintain the industry’s global competitiveness.

Fiscal and Market Access Improvements

In line with the push for storage, AEPIBAL proposes eliminating the double taxation of charges and fees for storage installations behind the meter.

In this sense, its president reiterates that this would solve the issue of double taxation faced by many installations, allowing for a significant reduction in operating costs for consumers involved in self-consumption.

Furthermore, a reduction in VAT for residential batteries and tax benefits for companies at 0% is proposed.

This measure would be a key incentive for households and businesses to invest in battery integration for their energy consumption systems. For commercial sector installations, a tax benefits model is suggested to drive large-scale storage adoption.

Challenges and Opportunities in the Lithium Value Chain

Lithium, an essential resource in the battery industry, represents a strategic opportunity for Spain. However, Marquina warns that the availability of this resource largely depends on commercial agreements and the development of local capabilities.

To improve its position, AEPIBAL proposes a focus on bilateral agreements, local mining development, battery recycling, and purchases from international raw material markets.

This four-pillar approach to the lithium value chain ensures that the industry can minimize risks and strengthen its independence.

In Marquina’s words, “clearly, the development of a local industry must be incentivized, and external products must meet the same quality, safety, and sustainability standards required in Europe.”

Regulatory Framework and AEPIBAL’s Allegations

In addition to its proposals, AEPIBAL underscores the importance of a favorable regulatory framework for distributed storage.

Marquina highlights that among the priority issues, the participation of independent aggregators in the electricity markets should be allowed, as these players can energize the market by creating new business models.

This proposal involves enabling the aggregation of consumption and generation from small installations to facilitate their participation in balancing and capacity markets, contributing to greater competitiveness and flexibility in the electrical system.

Finally, in its proposals for the regulation of distributed storage, AEPIBAL considers it essential for behind-the-meter storage to be able to participate in balancing and regulation markets.

“The capacity market is key to the development of distributed storage, and its inclusion would increase the system’s efficiency,” concludes Marquina.

Regulatory Proposals from AEPIBAL for Distributed Storage

AEPIBAL has developed a set of 10 measures aimed at optimizing distributed storage in the Spanish electrical system, with the goal of maximizing the profitability of self-consumption installations with batteries and promoting participation in local markets.

The proposals emphasize the importance of relaxing regulations to integrate distributed storage into projects without photovoltaic generation, which is currently not possible.

Among the main proposals, priority is given to allowing collective self-consumption to charge batteries from the grid.

This would maximize battery utilization and optimize energy use in shared installations, such as energy communities.

“The effect of storage is to extend the time during which self-consumption can occur, meaning energy can be used during times of lower solar radiation,” explains Marquina.

Additionally, AEPIBAL suggests revising regulations so that the capacity of self-consumption installations with storage is considered based on access capacity, rather than combining generation and storage capacity. This measure would help maintain tax benefits and prevent overgeneration during periods of lower consumption, improving the integration of renewable energy and providing flexibility to the grid.

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