5 Trends Shaping M&A in Spain''s Energy Storage
Spain''s energy storage market is at a tipping point. Investor interest is intense, regulatory developments are on the horizon and the
Energy storage systems in Spain are a key element in the fight against climate change, as they help us to address the challenge of the energy transition. These systems make renewable energy production more flexible; and therefore help us to guarantee its integration into the Spanish electricity system.
As a result, shorter duration storage options like batteries are more suitable in Spain. In Spain, over 50% of excess renewable energy occurs in periods where there is continuous excess for less than 12 hours i.e. a battery that chooses to charge on this energy would be able to discharge within 12 hours.
With more than 20,000 megawatts, Spain is the country with the largest number of energy storage systems in Europe measured by power, and has the second largest number of projects: 128 in total; second only to Germany's 169.
This lack of interconnection isolates the Iberian markets from the rest of Western Europe, meaning Spanish storage faces limited competition from cross-border flexibility. Wholesale price spreads in the energy market have increased over the past 2 years.
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