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Spanish energy sector: Grid expansion and storage growth

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2026-10-26 06:58 UTC → 2026-10-27 10:16 UTC · added ~~removed~~

Spain is moving to significantly expand its battery energy storage systems (BESS) to manage renewable intermittency, with projections suggesting capacity could multiply within 18 months. While solar installations currently include storage in only 6.6% of cases, the Ministry for the Ecological Transition (MITECO) is initiating the allocation of up to 11 GW of grid access capacity for renewables and storage. This initiative targets transition nodes in five autonomous communities—Galicia, Andalusia, Asturias, Castilla y León, and Castilla-La Mancha—to support areas affected by the closure of coal and nuclear plants. Despite advancements, the sector faces intensifying efficiency and stability challenges. While renewable energy contributed €17.5 billion to Spain’s GDP in 2025, energy waste is rising. A study by Nera indicates that between September 2025 and August 2026, renewable energy curtailment reached an estimated 35 TWh, representing 14% of Spain's 255 TWh demand. Experts, including former Red Eléctrica executive Luis Atienza, highlight a growing imbalance between high renewable production and insufficient demand or system flexibility. Furthermore, the pace of new installations is moderating. In 2025, construction permits for renewable projects totaled less than 8,200 MW, a 69% decrease from the previous year. This slowdown is attributed to overcapacity, stagnant demand, and investment uncertainty caused by volatile market prices, which has hindered bank financing. Infrastructure bottlenecks persist; in Extremadura, the grid lacks the capacity to transport energy to major centers, and broader grid limitations continue to necessitate curtailment to maintain stability. Recent developments highlight regional shifts and technological adaptations. In Huelva, the ENCE industrial complex has become a biomass leader, operating three plants with a combined 137 MW capacity. In Extremadura, despite the approval of nearly 8 GW of generation capacity, infrastructure gaps continue to force production halts and deter industrial settlement.

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