Port of spain demand-side energy storage demonstration project

What is Spain's energy storage strategy?

Spain’s government has approved an energy storage strategy that it says will put the country “at the forefront” of what is being done in Europe and help it move towards its 2050 climate neutrality target. The roadmap foresees the country ramping up its storage capacity from the current 8.3GW level to 20GW by 2030 and then 30GW by 2050.

How would a capacity mechanism work in Spain?

Capacity mechanisms pay energy generation and storage site owners for having capacity available for deployment in times of grid need, as well as paying for the electricity provided. Any such system would complement Spain’s active demand response service, which stimulates the demand side of the supply and demand equation to help keep the lights on.

Could a capacity mechanism guarantee security of electricity supply?

Spain’s MITECO has opened consultation about the form of a capacity mechanism or capacity market which would guarantee security of electricity supply. Capacity mechanisms pay energy generation and storage site owners for having capacity available for deployment in times of grid need, as well as paying for the electricity provided.

What is Spain's Integrated National Energy & Climate Plan 2021-2030 (PNIEC)?

The roadmap follows the recent publication of Spain’s Integrated National Energy and Climate Plan 2021-2030 (PNIEC), which foresees the staggered introduction of battery storage installations into the system to maximise the capacity of non-dispatchable renewable technologies.

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.