Without batteries, there is no green paradise

After the blackout on April 28, energy storage has captured a great deal of attention as the necessary and definitive solution in the new and revolutionary energy model we are building. And the reason is obvious: storage, at least the kind based on batteries in any of their forms (in front or behind the meter, better known as FTM and BTM respectively), is the element that provides manageability to a non-manageable generation model—that which comes from certain renewable sources (some hydroelectric plants are indeed manageable). In other words, if we want to electrify our industrial and domestic ways of life, and if we want this electrification to be green, safe, and emission-free, renewable energy sources are the only answer, and storage is the necessary travel companion. As we often repeat, battery storage is not the engine or the bodywork of the car—it is its wheels. And without wheels, we cannot move…

Is the deployment of storage progressing in Spain?

Lawmakers are often reproached—somewhat lightly—that storage is not advancing in our country, but that is not an accurate picture. It is true that progress could be faster, but it is equally true that every step taken is in the right direction. If we consider that in 2021 storage did not yet have a clear legal framework, and today €700M are being tendered for storage projects, it is reasonable to conclude that many things have been done—and done quite well—although bottlenecks remain, because the regulatory transformation of our entire energy model is not simple and must break decades-long inertia in a very short time.  

For the definitive deployment of storage, we face three major regulatory challenges:

• The first relates to revenues: it is urgent to launch the first Capacity Market auction, for which we already have a very interesting draft open to competition between technologies, and to begin working on remuneration models for the multiple services that batteries can provide to the grid.
• The second concerns the land use of battery plants: it is essential that, as the regional governments of Valencia, Catalonia, and Murcia have advanced, storage be considered a technical infrastructure that provides services to the grid. This would allow its installation in any area—rural or industrial—and especially, as AEPIBAL has defended for years, next to Electrical Substations or hybridized with renewable generation plants. These are the locations where storage is most efficient and profitable for the system, using land already visually impacted and avoiding more and more grid lines.
• Finally, the third regulatory challenge has a high technological component that should, on one hand, allow storage to be considered a fully flexible asset that—whether for generation or demand—does not occupy grid capacity (the CNMC is leading this vision of flexible storage, and we hope to see success soon), and on the other hand, incorporate elements that support the operation of the electric grid, such as Grid Forming.

Industrial Opportunity and Excellence

That said, the 2030 target is 22.5 GW of installed storage, a figure that includes different technologies such as pumped storage or thermal storage, but which roughly anticipates the installation of up to 12 GW of batteries. We see this as unfeasible within five years, but it should set an ambitious direction that would allow us to reach at least half of that figure.

To achieve this, demand growth will play a very prominent role, as it will keep renewable generation prices at attractive levels to ensure the continued deployment of solar and wind plants—and with them, storage. The arrival of new industry, support for the electric vehicle, and, above all, the electrification of our existing industrial base must be the vectors driving this demand, supported by clean, affordable, and manageable energy.

In this natural state of growth, we want to draw attention to two critical issues: first, the time has come for European industry to take control of the technology to be implemented; and second, there is no room for projects that are not excellent.

The first point is not only an industrial opportunity that entails expanding the supply chain, creating high-quality employment, and fostering technological contributions from our research capabilities. It is more than that. The alternative is absolute zero for our industry: closing factories, shutting down innovative projects, and resigning ourselves to the tragic “let them invent”—or rather: let them invent, design, manufacture, build, operate, and control “our” assets. Failing to adopt protective measures regulated at the EU level would put the real and domestic (European) industry at risk. This also means that final customers—the ultimate owners of the assets—must commit long-term to manufacturers who can guarantee three things: excellent quality at affordable prices, impeccable service—fast, well-trained, close, and professional—and industrial safety conditions that do not jeopardize the future operability of the assets (cybersecurity). In this regard, dialogue between manufacturers and developers across different geographies is the path forward. 

Finally, if we state that in storage projects there is only room for excellence, the message is clear: a battery plant is not a collection of containers placed anywhere. A battery installation is an electrical infrastructure project that must be designed, built, and operated with the highest quality standards, with the best equipment and suppliers, following all safety protocols, and with the involvement of all stakeholders who may need to act in future contingencies: civil protection, firefighters, municipalities, etc. For this reason, the major companies in our country must lead by example through good practice and maximum rigor in every one of their actions. This is our wish, and for this path to succeed, we will always stand alongside anyone who seeks our collaboration.