Spain’s energy storage market is entering a more mature phase. After several years of accelerated price declines driven by lithium oversupply and economies of scale, 2026 is expected to mark a structural stabilisation point, alongside stronger financial consolidation in the commercial and industrial (C&I) segment.
“Battery prices have fallen spectacularly; we are now at levels that would have been unthinkable five years ago,” said Jesús Heras, Technical Director SouthWest Europe at Wattkraft, during Future Energy Summit (FES) Iberia 2026.
However, the executive clarified that the downward trend may be reaching its limit: “Those prices will tend to flatten out; they will stagnate. I don’t believe they will fall further in the short term.”
According to Heras, the total system cost no longer depends solely on lithium. The growing weight of power electronics, protection systems and balance of system (BoS) components is narrowing the scope for additional price reductions. He stressed that raw materials are only part of the equation, as integrated safety features and supporting technological infrastructure for energy storage involve costs that are difficult to compress further.
At the same time, he warned: “We have reached a point where demand is rising, and companies that had stopped investing in mining due to lithium oversupply now need to resume activity to rebalance supply and demand.”
Watch the full interview with Jesús Heras: https://www.youtube.com/watch?v=gDMkj5sm6CY
In this new context of greater cost stability, profitability in the C&I segment is taking centre stage. Since its inception, Wattkraft has maintained a strategic focus on industrial self-consumption and distributed generation — a decision that is now delivering tangible results in terms of returns and predictability.
Behind-the-meter battery energy storage systems (BESS) serve multiple functions. They are not limited to energy arbitrage; they also enhance the electrical architecture of industrial facilities and support grid integration.
“It is profitable. Beyond the energy savings achieved by shifting generation from off-peak to peak-price periods, there is an inherent economic benefit,” he stated.
This is complemented by peak shaving, a key tool in industrial electrification processes. Heras explained that many industries face power capacity limits at their grid connection point, and batteries allow them to increase consumption without reinforcing the grid connection.
Energy resilience has also become a decisive factor following the blackout that occurred in Spain on 28 April 2025. Energy storage systems can ensure operational continuity and protect critical loads — or even an entire plant — depending on system sizing.
“All of this means that batteries in C&I environments offer higher profitability than utility-scale batteries, which are ultimately exposed to market remuneration and wholesale price volatility,” the company representative noted.
It is worth recalling that, according to recent industry data, battery installations associated with self-consumption grew by 119% over the past year, reflecting how energy storage systems have shifted from being a complementary add-on to becoming a central component of industrial energy strategies. Spain added 339 MWh of behind-the-meter storage capacity, compared to 155 MWh installed in 2024 — a 119% year-on-year increase. Specifically, the residential segment installed 158 MWh of storage, while the commercial and industrial segment added 181 MWh, concentrating on larger-scale projects and consolidating individual installations exceeding 5 MWh.
From a technological standpoint, Wattkraft operates as a single-brand partner of Huawei, prioritising safety and efficiency standards. Its lithium iron phosphate (LFP) solutions incorporate industrial-grade fire protection and thermal management systems.
“It is an industrialised battery, designed with fire suppression systems and thermal control to prevent thermal stress,” Heras explained, highlighting the importance of avoiding accelerated degradation that could compromise asset lifetime and levelised cost of storage (LCOS).
“We provide extended degradation warranties and ensure the batteries operate with high efficiency and very low auxiliary consumption, so as not to introduce additional costs,” he added.
From a regulatory perspective, 2026 will benefit from short-term momentum through European Regional Development Fund (ERDF/FEDER) support. However, the structural shift could consolidate between 2027 and 2028 through capacity payments and active demand response mechanisms. In that context, Heras stated that the company expects “a strong year.”
