Spain is funding a portfolio of batteries to strengthen the flexibility of its electricity grid.

The expansion of renewable energy sources in Spain increases the need for solutions capable of balancing electricity supply and consumption. In this context, three independent battery storage systems in the province of Biscay have reached financial closure, with an investment of €50 million.

Located in the municipalities of Güeñes, Barakaldo and Lezama, the projects, developed by Return Energy, will have a combined power of 55 MW and a storage capacity of 220 MWh.

According to DNV, responsible for the technical evaluation of the financing operation, this is the largest independent battery portfolio in Spain to reach this stage.

These projects are part of Return Energy's broader portfolio in the Basque Country, which includes more than 352,6 MW of power and storage capacity exceeding 1.400 MWh.

Expansion of renewable energy generation

Storage is considered strategic for the Spanish electricity system given the growth of variable renewable generation, especially sources whose production depends on weather conditions.

Since batteries allow energy to be stored and made available later, this is helping to offset differences between periods of higher generation and periods of higher demand.

This flexibility contributes to grid stability and the integration of larger volumes of renewable electricity. This challenge is particularly relevant for Spain, which plans to substantially expand its storage infrastructure by 2030.

The Spanish National Energy and Climate Plan sets a target of 22,5 GW of storage capacity by the end of the decade, of which 12,5 GW should correspond to battery systems.

Since the implementation of these solutions is still in its early stages, projects that move towards financing and construction are important to transform planning goals into effectively installed capacity.

Technical evaluation

DNV participated in the operation as an independent consultant, conducting a due diligence process — a detailed assessment of a project's conditions before the release of financing.

The work encompassed the analysis of the project, the chosen technologies, the contracts, and the main technical risks, as well as recommendations to mitigate these risks.

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