​Spain is a leader in renewable energy deployment in Europe, but its battery energy storage market (BESS) is still in its early stages. With just 18 MW of standalone batteries installed, the current landscape is limited; however, this is set to change. Growing price spreads, increased locational constraints, and declining solar capture rates are all pointing to a clear need for storage.
On October 8th, we hosted a livestream exploring the battery energy storage market in Spain. A recording is available above - along with the slides at the bottom of this article. For Modo Energy subscribers, here are five key takeaways.
1. Gas and Hydro determine Spain’s price peaks
​Price spreads in the day-ahead market are widening. Solar continues to suppress prices during daylight hours, but in the evenings, price-setting is dominated by CCGTs and hydro assets. Rising gas prices are causing price peaks to climb, with CCGTs rarely clearing in the market for less than €110/MWh.
Hydro generators display seasonal pricing behaviour. In spring (March–May), following wetter winters, hydro assets act more like renewables - offering energy at prices below €50/MWh due to the risk of reservoir overflow. As summer approaches and water becomes more valuable, hydro pricing aligns more closely with gas-fired generation.
