The Spanish Energy Storage Market: Foundations for a Clean Energy Future

Guillermo Laine Cuervo, Iván Jares Salguero and Efrén García Ordiales ()
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Guillermo Laine Cuervo: Energy Department, Polytechnic School of Engineering, University of Oviedo, Energy Building, Campus of Viesques, 33203 Gijón, Spain
Iván Jares Salguero: Department of Mining Exploitation and Prospecting, School of Mining, Energy and Materials Engineering, University of Oviedo, Independencia 13, 33004 Oviedo, Spain
Efrén García Ordiales: Department of Mining Exploitation and Prospecting, School of Mining, Energy and Materials Engineering, University of Oviedo, Independencia 13, 33004 Oviedo, Spain

Energies, 2025, vol. 18, issue 21, 1-27

Abstract: Spain’s accelerating renewable deployment has exposed growing challenges of intermittency, market volatility, and system stability, underscoring the urgency of energy storage integration. This paper examines the economic and regulatory viability of lithium-ion battery storage when hybridized with photovoltaic and run-of-river hydro generation. By analyzing captured price trends, intraday spreads, and feedback effects on market dynamics, we assess how battery storage enhances revenue certainty and system resilience. Results indicate that stand-alone arbitrage is insufficient under current conditions, whereas PV–BESS hybridization emerges as the most viable near-term pathway. Additional revenues from capacity mechanisms and ancillary services are identified as critical to ensure long-term investment feasibility. The April 2025 blackout highlighted Spain’s systemic vulnerability and reinforced the strategic importance of storage deployment. Our findings demonstrate that the success of the Spanish energy transition depends not only on continued cost reductions in battery technology but also on coherent regulatory design and infrastructure planning to secure large-scale integration.

Keywords: battery energy storage systems (BESS); renewable energy integration; electricity market dynamics; hybrid photovoltaic–storage systems; regulatory frameworks for flexibility (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2025
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