AleaSoft Energy Forecasting, June 6, 2025. The first AleaSoft Annual Meeting brought together experts from the energy sector to analyse the main challenges and opportunities in the Spanish electricity market, with particular focus on the price evolution, the key role of batteries, the need for new demand and the current difficulties in financing. The launch of a new call for aid from IDAE for storage projects reinforces the institutional boost to this strategic technology.
The first AleaSoft Annual Meeting was held in Madrid on Wednesday, June 4, with the aim of becoming a reference event for analysing the most pressing issues in the energy sector in Spain and Europe. The event began with a welcome and an analysis table moderated by Antonio Delgado Rigal, CEO and founder of AleaSoft Energy Forecasting. The panel featured the following speakers: Alberto Martín, Energy Sector Consulting Partner at PwC Spain, Antonio Hernández García, Partner of Regulated Services at EY, Carlos Milans del Bosch, Partner of Transactions, Energy Sector at Deloitte, and Oriol Saltó i Bauzà, Associate Partner at AleaSoft. The event concluded with a networking cocktail, where all attendees had the opportunity to exchange views with colleagues from the sector.
During the Meeting, electricity sector experts analysed the current situation and outlook for the Spanish electricity market. The analysis table addressed key topics such as price evolution, the role of batteries, the need for new demand, the development of the capacity market, and the current obstacles to financing renewable energy projects.
A first half of contrasts in prices
The Spanish electricity market has registered highly contrasting first five months of 2025. In January, February and the first half of March, prices were typical of the winter season, with peaks above €200/MWh and minimums that, on most days, remained above €100/MWh. From the second half of March through April and May, a more spring‑like pattern emerged, with near‑zero or even negative prices during central hours of the day. As a result, solar photovoltaic energy registered historically low captured prices, with an average of just €1.81/MWh in May.
This behaviour was influenced by gas prices, which remained high until February and declined afterwards. Compared to the first five months of 2024, the situation in 2025 has been somewhat more favourable due to higher winter prices and a delay of around four weeks in the onset of lower spring prices, due to weather conditions.
Looking ahead to summer, prices are already beginning to recover as temperatures rise, demand increases and hydroelectric and wind energy generation decrease. A typical summer configuration is therefore expected both in market prices and in the prices captured by photovoltaic energy. In addition, gas prices are forecast to rise as Europe works to refill its storage ahead of next winter.
Batteries: from a promise to a strategic necessity
The integration of batteries into the electricity system is emerging as a strategic necessity on the path towards a predominantly renewable electricity system. However, deployment remains in its early stages. Currently, only 23 MW are installed in the mainland system, according to data from Red Eléctrica. Nevertheless, there is significant interest and volume of projects under development: 12.8 GW already have access and connection permits, and another 17.1 GW are being processed. The NECP foresees 9.4 GW installed by 2030.
Although batteries in the mainland system charged less energy during the first five months of 2025 than in the same period of 2024, the panellists agreed that the next five years will be crucial for their development. Batteries will not only be essential for balancing the system, but also for improving the financial viability of renewable energy projects, especially through hybridisation. This combination will transform solar plants into manageable assets, with operational decisions made every 15 minutes instead of depending solely on solar and wind availability.
New demand: a prerequisite for the transition
All the panellists agreed that growth in electricity demand is the key driver for progress in the energy transition. Traditional demand is growing slowly due to factors such as self‑consumption and energy efficiency, but the cornerstone lies in new demand driven by the electrification of sectors such as industry, transport, heating and green hydrogen production. The emerging role of data centres as new sources of intensive electricity consumption was also highlighted.
Capacity market and financing: obstacles and opportunities
The capacity market was identified as a critical element for unlocking the development and financing of battery storage projects. Regarding financing, sentiment in the sector has deteriorated due to the growing prevalence of negative prices during the day, which particularly affects solar producers and the financiers of new projects.
Investor interest in renewable energy has declined in recent months, and appetite for financing merchant projects has almost disappeared. The signing of new PPA has also slowed significantly, despite being essential for securing financing at present.
Nevertheless, experts expressed long‑term optimism: with the anticipated increase in demand and the integration of batteries into the system, hybrid renewable projects with storage have a very promising outlook. Even so, financing these projects remains a major challenge. According to the panellists, no banks have yet started financing stand‑alone battery projects or hybrid plants with storage, although interest is high and the financial sector remains attentive.
New momentum for storage: new IDAE call for aid
In parallel with the growing interest in energy storage, the Institute for the Diversification and Saving of Energy (IDAE) has recently launched a new call for aid for storage projects under the 2021‑2027 FEDER programme, with a budget of €700 million. This amount equals the total accumulated budget of all previous calls and may be increased by up to an additional 20% if project demand justifies it, a common occurrence in past calls, where demand has always exceeded available funding.
This initiative adds to IDAE’s ongoing efforts—also through the Recovery Plan—to meet the storage targets set out in the NECP. Notable aid already granted includes: €150 million for hybridised storage (36 projects), €157 million for stand‑alone and thermal storage (45 projects), and €100 million for pumped storage projects. In addition, Royal Decree 477/2021 allocated €240 million to around 40 000 behind‑the‑meter (BTM) storage projects, mostly associated with self‑consumption systems.
As these are FEDER funds, the current call includes specific evaluation criteria, with a minimum weight of 70% for the economic criterion, in addition to technical maturity and the socio‑economic benefits of the projects.
AleaSoft is actively supporting stakeholders in the preparation of applications for this aid. There has been a notable increase in demand for revenue projections and financial models for battery projects, both for stand‑alone installations and hybridised with solar photovoltaic energy and wind energy plants-reflecting the strong demand expected for this call.
Prospects for European energy markets in the second half of 2025. Renewable energy, PPA and batteries
On June 12, the next webinar in the series of monthly webinars organised by AleaSoft Energy Forecasting will take place, which in this case will be number 56. For the seventh consecutive year, guest speakers from Engie Spain will participate in this webinar. The topics to be analysed will be the evolution and prospects of the European energy markets for the second half of 2025, growth opportunities in the renewable sector, the current situation of the PPA market in Spain and the prospects for energy storage in batteries.
Source: AleaSoft Energy Forecasting.
