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.
Namely, from 43 €/MWh (lower case) to 52.5 €/MWh and from 47 €/MWh (high case) to 56.5 €/MWh. This is comparable with the 67 €/MWh LCOH for the TES with retail charges. In Spain, subsidies for storage will be granted through four calls under the PERTE ERHA1 scheme.
Spain is relatively isolated from other markets and only has limited import and export capacity to France, Portugal and Morocco. This means that Spanish storage faces limited competition from cross-border flexibility. The Spanish Government have recognised the need for storage and set a target of 22GW by 2030.
Due to the different generation mix, the duration of excess or shortfall of electricity will be shorter in Spain than Great Britain (GB). This is primarily due to the daily generation profile of solar energy and the longer-term patterns in wind generation, which can last for weeks.
Spanish wholesale markets have offered increasing revenues due to recent price volatility which rewards BESS through power trading. However, sustained investment in batteries will be supported by fully opening up markets.
A power system heavily solar dependent in 2030 will require high levels of short duration battery storage installed in Spain in the near future. Spain is relatively isolated from other markets and only has limited import and export capacity to France, Portugal and Morocco.