Energy storage in Spain
Energy storage in Spain
Current regulatory developments
Updated September 2026
Grid access overhaul: RDL 7/2026 introduces flexible access permits for storage as demand; amendment to RD 1183/2020 enables storage capacity reservation in contest/just-transition nodes
Transmission / distribution charge exemption now conditional on adopting flexible access permits under RDL 7/2026; failure to adapt within three months bars exemption under RD 148/2021
New Capacity Market: On 17 September 2026, Spain has established a capacity market for peninsular electricity system in Order TED/966/2026, following European Commission approval on 29 May 2026
PERTE - ERHA subsidy framework expanded: EC-approved €700 M FEDER scheme for large-scale storage
PNIEC objectives for storage remain (22.5 GW storage target by 2030)
Five things to know about BESS in Spain.
Energy storage can be: (i) auxiliary installation hybridizing another installation (solar PV, wind, CSP) or (ii) an independent energy installation (stand-alone) using the same authorization framework as generation, including environmental impact.
Revenue combines balancing services and wholesale markets, with exemptions from grid charges. Sources include automatic Frequency Restoration Reserve (aFRR), Replacement Reserves Platform, and wholesale market participation (day-ahead and intraday trading). Energy storage batteries connected to transmission and distribution are exempt from charges or tolls, providing a meaningful economic advantage – note need to adapt to flexible access permits.
Order TED/966/2026 is a landmark for the BESS sector in Spain. Capacity market and future tenders will complete the stack revenue of BESS projects and facilitate financing of projects in Spain.
Main features of the new capacity market are, in a nutshell: Loss of Load Expectation (LOLE) reliability standard of 1.5 hours; sealed-bid, pay-as-bid auctions of reliability options, main auctions five years ahead of delivery, adjustment auctions one year ahead of delivery, and transitional auctions during ramp-up phase; service periods of up to 15 years; broader eligible participants – production and storage aggregators added; robust verification regime with escalating penalties; dual economic guarantee regime imposed, during the period from auction to start of service, and during service itself.
The technology is penetrating steadily and the market is developing in Spain, with increasing business cases, although still beyond the UK or Italy in terms of maturity. Actual, or potential for, hybridization is becoming a must for the acquisition and bankability of “conventional” renewable assets.
Credentials
Return Energy, as a developer, in the drafting and negotiation of BOP and LTSA contracts for a BESS plant of 40MW located in Vizcaya
International IPP on the review and improvement of its supply, BOP and LTSA agreements for BESS
an investor on a tolling agreement
Eversheds Sutherland recognized as one of the 10 most prestigious legal brands in Spain and Portugal according to the annual "Best Law Firm Brands" ranking by Iberian Lawyer.
Explore other key BESS markets
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