AleaSoft Energy Forecasting, November 19, 2024. Summary of the interview by Milena Giorgi, from Energía Estratégica España, with Antonio Delgado Rigal, PhD in Artificial Intelligence, founder and CEO of AleaSoft Energy Forecasting. The interview addresses the growing interest in batteries in the Spanish market and analyses the opportunities and challenges facing the sector on the verge of a five‑year period that will be characterised by the development of batteries and hybridisation.
According to data from Red Eléctrica, a total of 17 GW of batteries have currently applied for access to the transmission and distribution grids, of which more than 9 GW already have permits and more than 7 GW are in progress. The vast majority of these projects are in stand‑alone mode, and at least 1 GW corresponds to hybridised projects.
In the interview, Antonio Delgado Rigal explains that the integration of batteries in renewable energy installations represents a great opportunity for developers and producers of renewable energy, as it allows them to reduce curtailments and mitigate price cannibalisation; thus optimising profitability and revenue stability.
By hybridising renewable energy with batteries, developers can offer production profiles more aligned with offtakers’ consumption, making their projects more attractive to sign a PPA. This, in turn, allows them to negotiate better prices and conditions in PPA contracts, strengthening the financial viability of their projects.
In addition, in the last year, the cost of batteries has decreased by 50%, allowing both stand‑alone and hybridised projects to become profitable. Currently, hybrid systems that already have access to the grid and a balance of plant are more profitable because the CAPEX associated with the battery is reduced.
Spain is at an early stage of growth in the battery market. However, the data on requested access points reflects a considerable increase in interest in these projects in the last year.
Currently, one of the factors slowing down the progress of projects is the sector’s wait for the launch of the capacity market, scheduled for the first quarter of 2025, which is considered key to improving the viability and profitability of energy storage facilities.
According to Antonio Delgado Rigal, the sector’s main concerns include the need for clarity and stability in the regulations governing storage and its integration into the electricity market. Also of concern is the uncertainty about potential revenues and the economic viability of projects, as well as the difficulties in obtaining competitive financing due to the perceived risk associated with this emerging technology.
At AleaSoft Energy Forecasting, energy storage is considered a strategic vector for a sustainable and efficient energy system. The CEO of AleaSoft states that the development of the sector is at a turning point: the last five years have been marked by the development of photovoltaic energy, while the next five years will be dominated by batteries and hybridisation. AleaSoft’s focus is on providing forecasting and analysis tools that enable its clients to maximise the value of their investments in projects with storage.
