The Strategy sets ten lines of action and 66 measures including storage in the energy system, circular economy, energy communities and ways for citizens to participate, green hydrogen promotion, creation of new business models with the intent of recycling and getting a second life out of batteries, plus policies to remove administrative barriers to facilitate new projects.
Why do we need energy storage systems in Spain?
Energy storage systems in Spain are a key element in the fight against climate change, as they help us to address the challenge of the energy transition. These systems make renewable energy production more flexible; and therefore help us to guarantee its integration into the Spanish electricity system.
What is Spain's battery storage market?
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 batteries co-located with solar PV. Spain's household electricity prices now stand at over EUR 0.30/kWh on average.
Does Spain have a storage market?
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
This variability, combined with Spain's excellent solar resources, make the economics of combining solar with storage increasingly favorable. The market for utility-scale batteries has been almost non-existent until recently as the market has lacked a clear policy and regulatory framework.
Will Spain achieve 20GW of storage by 2030?
In addition, Spain has developed a national storage roadmap that includes a target to achieve 20GW of storage by 2030. However, current levels of customer-sited storage adoption already exceed its 2030 targets.37 To date, neither has been sufficiently attractive to mobilize investments at scale.
How much does storage cost in Spain?
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 Spain, subsidies for storage will be granted through four calls under the PERTE ERHA1 scheme.