Spain and Portugal firms increase battery storage to prevent power cuts

Industrial firms in Spain and Portugal are rapidly increasing investments in battery energy storage systems to mitigate risks from power volatility and grid instability. This surge follows significant disruptions, including a major blackout in April last year and Storm Kristin, which caused widespread outages in central Portugal.

In Spain, battery storage capacity has grown nearly sevenfold since April, rising from approximately 28 MW to 193 MW according to grid operator Red Eléctrica. The Institute for the Diversification and Saving of Energy (IDAE) has awarded €827 million in EU-sourced funds to 133 energy storage projects totaling 2,400 MW, with roughly 80% of these being battery-focused. This expansion is expected to increase Spain’s grid-connected battery capacity nearly tenfold.

The shift toward electrification, supported by European Union subsidies, has helped reduce emissions but has also increased vulnerability to power cuts as industries move away from stable fossil fuel baseloads. Companies like the Spanish meat processor Fribin, which suffered hundreds of thousands of euros in losses during a previous blackout, are now investing heavily in large-scale battery modules to ensure continuous operation for critical systems like refrigeration.