Iberia: Why are there no batteries in Spain?
However, despite another wet year in 2025, price spreads have risen back to 2022 levels. This effect is due to an increase in solar supply alongside
However, despite another wet year in 2025, price spreads have risen back to 2022 levels. This effect is due to an increase in solar supply alongside
While the sale of fully electric vehicles surged by around 32% (to 52,224), the sale of hybrid vehicles rose by 11% year-on-year to 48,201. This has led to an increased demand for lithium
However, despite another wet year in 2025, price spreads have risen back to 2022 levels. This effect is due to an increase in solar supply alongside stable year-over-year demand.
Electric vehicles typically associated with power storage tend to be more expensive to manufacture due to advanced components. Battery
Namely, from 43 €/MWh (lower case) to 52.5 €/MWh and from 47 €/MWh (high case) to 56.5 €/MWh. This is comparable with the 67 €/MWh LCOH for the TES with retail charges. In
The evolution of the Spanish energy storage market is marked by the incorporation of advanced technologies and cost reduction, which is making storage solutions increasingly
Does Spain have a storage market? Utility-scale storage remains nascent. Currently, Spain''s storage market is mainly composed of small-scale batteries co-located with solar PV. Spain''s
With low Spanish demand levels for power and ample renewable power production, there needs to be more storage capacity to ensure negative prices are managed.
Since 2021, despite the gas price cap introduced by the Spanish government on generators, high gas prices have led to much greater price volatility for batteries to capitalise on.
Spain''s battery storage market is dominated by customer-sited systems. Utility-scale storage remains nascent. Currently, Spain''s storage market is mainly composed of small-scale
Electric vehicles typically associated with power storage tend to be more expensive to manufacture due to advanced components. Battery capacity also directly correlates with the
In this report, we delve into the developments in the regulatory framework of the Spanish electricity system and explore the potential of Spain''s battery energy storage systems
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Currently, Spain’s storage market is mainly composed of small-scale batteries co-located with solar PV. Spain’s household electricity prices now stand at over EUR 0.30/kWh on average. In addition, Spain’s reliance on fossil gas has increased price volatility in recent years.16,17,18,19
However, the government is developing new schemes to incentivise storage deployment, including adapting capacity markets under a new scheme named ‘Renewable Energy Economic Regime’. In addition, Spain has recently introduced subsidies specifically for storage systems co-located with solar PV.35
Economic curtailment: Most Spanish solar installations are large commercial projects with remote control capabilities. When prices become negative, solar operators stop generating. This price-sensitive behaviour creates a floor near €0/MWh. The increase in negative prices creates an opportunity for storage: