BESS in Spain: the situation of the energy storage market
El future of energy storage in Spain, particularly with BESS batteries, looks very promising. Continued technological evolution and cost reduction are expected to drive the
In March 2025, UK companies Renewco and Atlantica announced the development of up to 2.2GW of BESS projects across Spain. Other projects in the pipeline primarily involve storage co-located with solar or wind generation. According to BloombergNEF, the total capacity currently in the BESS pipeline is around 3GW.
Currently, Spain has 6.3GW of hydroelectric and 1GW of thermal storage capacity installed. In fact, the non-BESS storage capacity in Spain is higher than in any other European country. As a result, the need for BESS to integrate renewable energy sources into the electricity system is less immediate than in the UK, for example.
The current situation of the Spanish BESS market confirms that both of these factors are required to gain market attraction: Despite a high penetration of renewable energy, the Spanish regulatory framework has been lagging and the first BESS projects of significant size have yet to be built.
Without batteries, the surplus would be wasted. With a BESS, that energy is stored and used at night or during low-generation periods. This balances supply and demand, relieves pressure on the grid, and increases energy efficiency. In a highly renewable and intermittent system like Spain's, this makes all the difference.
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