Energy storage has become a key component of Spain's electricity future, amidst the advancement of renewable energies and the gradual phase-out of nuclear power generation. Ensuring grid stability in the face of production variability, meeting peak demand, and responding to potential blackouts are some of the major challenges today, which both industry and government are seeking to address with new technological solutions and adapted regulatory frameworks.
In recent years, large-scale projects have emerged , along with a growing national industrial commitment—especially in the integration of batteries with photovoltaics—while the regulatory debate and institutional support keep much of the sector in suspense due to the lack of specific legislation that provides security and dynamism to investments.
Industrial drive and new storage projects in Spain
Spanish and European companies are leading the rollout of energy storage solutions to support the energy transition. Endurance Motive , a Valencian firm specializing in lithium batteries, has closed the sale of its first 5.015 kWh megabattery , the first manufactured entirely on the Iberian Peninsula and destined for a solar project in Las Palmas de Gran Canaria . This represents a milestone for the national industry, both for its engineering capabilities and its focus on the integration and operation of large-scale Battery Energy Storage Systems (BESS).
The system costs around €500.000 and is integrated into a photovoltaic plant to improve the management of generated energy. According to the company, this step consolidates its position as a key player across the entire value chain: from manufacturing and design to the commissioning and maintenance of systems for the renewable energy hybridization market.
In parallel, Galp has begun developing two major energy storage facilities in Spain and Portugal, totaling 74 MW of capacity , with advanced battery systems that include grid-forming technology to improve grid stability. In Spain, the Manzanares solar park will host a 14 MW/28 MWh system, while in Portugal, four systems of more than 60 MW will be deployed at the company's solar parks. These initiatives are supported by European funding through the REPowerEU Recovery and Resilience Facility.
In Extremadura, major developers such as Iberdrola, Fotowatio, Naturgy, and Samca are currently undergoing environmental permitting for ten hybrid energy storage projects combined with solar power plants. These projects represent a potential investment exceeding €1.000 billion and a combined capacity of over 3,5 GWh . They could cover the entire region's energy consumption for several hours on their own and, according to industry experts, can mitigate voltage fluctuations and facilitate faster recovery from power outages.
European solutions, sustainability and adaptation to regulations
The European market is also accelerating. Maxxen , a Swiss manufacturer of energy storage solutions, has begun exporting its smart, modular, and scalable systems—manufactured in a carbon-neutral plant in Turkey—across Europe, with a strategy focused on industrial and commercial clients and large-scale installations. Its systems comply with EU technical and regulatory requirements and offer full adaptability for accessing public aid and financing—in line with calls for proposals from IDAE (the Spanish Institute for Energy Diversification and Saving), PNRR schemes, and REPowerEU and NextGenEU programs.
The technology portfolio ranges from large-scale BESS systems to modular behind-the-meter solutions for industrial self-consumption, including equipment with high reliability, durability, and European traceability . Maxxen is also committed to a sustainable model focused on the reuse and recycling of components, with centralized commercial and technical operations in Zurich and a direct presence in Spain and other strategic markets.
Regulatory challenges after the blockage of reforms
Despite this momentum, the sector faces regulatory uncertainty stemming from the recent parliamentary rejection of Royal Decree-Law 7/2025. Significant progress has been stalled, including the declaration of public utility for energy storage, the exemption from environmental impact assessments for hybrid projects, priority redispatch, and the introduction of demand aggregators. Industry associations such as ASEALEN and AEPIBAL warn of the risk to over €2.000 billion in investments and the potential loss of public funding and projects committed through 2030.
Domestic and European manufacturers and developers had submitted bids for more than 30 GW in recent calls for tenders, but the lack of certainty is hindering the sector's acceleration. Experts emphasize the urgent need to recover and adapt the essential measures of the decree, either through new legislative initiatives or parliamentary consensus. The common goal is to provide energy storage with its own stable framework that guarantees integration with renewables, the viability of new investments, and access to European funding.
Nuclear Challenge and Storage as a Renewable Backup
The debate surrounding the phase-out of nuclear power plants in Spain—which will continue until 2033—highlights the need to strengthen energy storage to mitigate supply risks and ensure coverage during peak demand. Currently, nuclear power accounts for approximately 5,2% of the country's total installed capacity, while renewable sources such as wind and solar power represent 65%.
Experts agree that, although other conventional technologies can cover much of the demand after the nuclear shutdown, it is crucial to deploy more storage — especially using batteries — to ensure that renewable energy is not wasted during off-peak hours and can be fed into the grid when it is most needed.
Currently, the vast majority of energy storage in Spain relies on pumped hydro storage , with only a small percentage supplied by batteries. The challenge lies in accelerating the deployment of modern, scalable systems capable of handling peak demand, mitigating voltage fluctuations, and providing flexibility in the event of unexpected outages in renewable or backup power generation.
The industry is experiencing rapid expansion, although it still depends on regulatory improvements that allow it to leverage investment and technological innovation at both the national and European levels. Storage is emerging as a guarantee of modernity, security, and resilience for the Spanish electricity system in the face of the challenges of the energy transition.
