expected ROI of business energy storage project in Spain 2026

Will Spain's energy storage sector expand?

The coming years will reveal the answer. Spain’s energy storage sector is set to expand with €699M in funding, supporting up to 3.5GW of capacity. Discover key opportunities and challenges for investors.

Will Spain get 20GW of new energy storage by ?

Spain is targeting 20GW of new energy storage by . MITECO also launched a similarly-sized grant scheme specifically for co-located or hybridised energy storage projects, for which proposals were due in March . Enel Green Power submitted two projects during the first quarter which fit the criteria, totalling 60MWh and 38MWh respectively.

Why are battery storage options more suitable in Spain?

As a result, shorter duration storage options like batteries are more suitable in Spain. In Spain, over 50% of excess renewable energy occurs in periods where there is continuous excess for less than 12 hours i.e. a battery that chooses to charge on this energy would be able to discharge within 12 hours.

Does the capacity market guarantee the profitability of storage projects?

The capacity market is a mechanism designed to ensure the security of electricity supply, complementing revenues from generation, storage, and demand response. However, it should not be considered a tool to guarantee the profitability of storage projects.

How is the capacity market developing in Spain?

The development of the capacity market in Spain has progressed in recent months with the publication of a public consultation in December . The process is currently following these steps: Public consultation: Recently concluded after a six-week period, during which feedback was received from various industry stakeholders.

How do strategic reserves work in Spain?

Strategic reserves, as in Germany, where they are activated only in the event of a supply risk. In Spain, the capacity market, still in the legislative proposal phase, presents the following characteristics and is subject to possible modifications: The TSO (Red Eléctrica de España, REE) collects bids and identifies firmness needs by nodes.

Technical and economic study of two energy storage

This report concludes that storage systems are not profitable under the current Spanish regulatory framework, where the revenues are obtained in short-term markets:

Unlocking Opportunity

LCP Delta and Santander have combined their expertise to provide this report into the opportunity for investment in battery energy storage systems (BESS) in Spain.

The latest developments in the Spanish energy storage industry

Driven by the goal of energy transformation, Spain's energy storage industry is full of potential, with continuous technological innovation and progress. The government has

Spain launching grants for 600MW of energy storage

Eligible projects will be judged on economic viability, their capability of helping to integrate renewable energy on the grid, and the creation of local employment and business opportunities as part of their development.

The capacity market in Spain: regulatory update and outlook for

The capacity market in Spain represents an opportunity for the storage sector but cannot be considered the sole basis for investment. Its design must be complemented by a

Storage Will Rewrite Spain’s Energy Future

What’s Next: Spain’s Capacity Market In December , Spain published a draft for its capacity market, expected to launch in . Key features include technological

Spanish storage investment to ease oversupply of renewables

LONDON (ICIS)–Spain should prioritize investing in energy storage to prevent market volatility and balance surplus supply. With low Spanish demand levels for power and

Spain's Grenergy plans to invest US$2.6bn on energy storage by

The company has renewed its brand to highlight its role as a key player in the energy storage industry by providing competitive and sustainable solar power 24/7.

Portugal awards grants to 500 MW of energy storage projects

A total of 43 projects were selected from 79 applications in Portugal's energy storage procurement. This included six projects from Spain's Iberdrola, which secured

Mirova Acquires Solar and Energy Storage Project Portfolio in Spain

The project consists of one “ready-to-build” solar project and is expected to begin construction by mid- with the expected date of commissioning by early . “The

Spain’s Grenergy to invest €2.6bn in solar and storage

Spanish independent power producer (IPP) Grenergy Renovables has unveiled its plans to invest €2.6bn in the next three years to expand its portfolio of solar power generation and projects. Grenergy is

Spain Launches €700 Million Energy Storage Scheme to

This new funding builds on earlier support under Spain’s Recovery, Transformation and Resilience Plan (PRTR), which has already mobilized €730 million for 4.5

Spain plans first capacity market auctions for summer

Projects which are the subject of auction bids would be permitted to emit a maximum of 550g of CO 2 per kilowatt-hour provided to the grid. With the capacity mechanism consultation period to close on Jan. 29,

Spain launching grants for 600MW of energy storage

Spain is launching €160 million (US$170 million) in grants for energy storage projects, aiming to fund 600MW of projects to go online in .

Grenergy to invest €3.5 billion in BESS, solar-plus

In Spain, the Oviedo project will be the flagship project for the new platform with a total capacity of 600MWh. It expects to finalise tolling agreements soon, while construction is targeted to begin in the first half of

Energy Storage Investments – Publications

As investment in renewable energy generation continues to rise to match increasing demand so too does investment, and the opportunity to invest, in energy storage.

Key legal challenges and opportunities in Spain

Energy sector stakeholders in Spain—including developers, investors, and infrastructure operators—face a critical year of legal and regulatory developments. Renewable generation is hindered by declining prices, lack of

bp and Iberdrola begin building Spain's largest green

The project involves a €70M investment and aims to be operational by the second half of . Construction includes a 25 MW electrolyser powered by renewable energy. The plant will produce 2,800

Top five energy storage projects in Spain

Global energy storage capacity was estimated to have reached 36,735MW by the end of and is forecasted to grow to 353,880MW by . Spain had 88MW of

European Market Outlook for Battery Storage -

The European Market Outlook for Battery Storage – analyses the state of battery energy storage systems (BESS) across Europe, based on data up to and

Backup power for Europe

Battery Energy Storage Systems (BESS) are key to integrating variable renewable energy sources like solar and wind. This report examines the factors influencing

Unlocking Opportunity

Providing insight, analysis and finance to support the global energy transition LCP Delta and Santander have combined their expertise to provide this report into the opportunity for

Top five energy storage projects in Spain

Global energy storage capacity was estimated to have reached 36,735MW by the end of and is forecasted to grow to 353,880MW by . Spain had 88MW of

Unlocking Opportunity

Providing insight, analysis and finance to support the global energy transition LCP Delta and Santander have combined their expertise to provide this report into the opportunity for

Spain to boost data centre capacity 80% by

The three major data centre markets, Madrid, Barcelona, and Aragón, which currently have a combined installed IT capacity of 314 MW, with an additional 249 MW

Spanish state providing €150 million for co-located

The Nuevos Ministerios complex in Madrid, which houses several government departments include the Ministry of the Environment (MITECO). Image: Enrique Dans. New energy storage projects co-located with

Spain tilts towards the sun with a €17 billion

Spain's solar market is experiencing significant growth, creating a wave of project and investment opportunities worth watching. With a combination of natural resources, policy stability, and innovative market

Spain to auction 829MW storage capacity to replace

The Spanish government is advancing plans to auction 829MW of renewable generation and energy storage capacity in regions where coal plants are decommissioned.

Grenergy puts hybrid solar-storage projects in Spain,

This move towards building more BESS and hybrid solar-plus-storage projects continues in the direction of its previous strategic plan spanning between -, when Grenergy announced a US$2.6