西班牙储能市场.pdf

SPAINAnalysis of the Battery Storage MarketThis report is part of a series that analyses the battery storage market in select European countries.To access the other reports,visit our website at:www.e3analytics.eu/project/eu-storage-market-analysesAcknowledgementsCopyright:E3 Analytics,May 2023 Design and Layout:Hot Ice Creative StudioAuthors:Toby D.Couture Javier Pamos Serrano Joseph ThomasThe research and analysis conducted for this report were supported by the European Climate Foundation.Photo CreditsCover:Alejandro/Adobe Stock;4:NOWRA photography/Adobe Stock;5:Anton Blanke/Adobe Stock;7:iamchamp/Adobe Stock;9:Negro Elkha/Adobe Stock;11:Blue Planet Studio/Adobe Stock;15:Alvaro/Adobe Stock;16:Vilaysack/Adobe Stock;17:Hot Ice Creative Studio3Spains battery storage market is dominated by customer-sited systems.Utility-scale storage remains nascent.Currently,Spains storage market is mainly composed of small-scale batteries co-located with solar PV.As of early 2023,the total customer-sited storage capacity is estimated at approximately 1.4 GWh.1 The market for utility-scale storage projects remains comparatively small at around 100MW,though a pipeline of projects is beginning to emerge.2,3,4,5 Much of Spains existing utility-scale storage capacity is in concen-trating solar power plants(thermal storage)and pumped hydro.6,7 Cumulative customer-sited solar PV capacity(MW)1Cumulative customer-sited storage capacity(MWh)8,9 MWh1 4001 2001 0008006004002000201920162018201520142020201720212022MW3 5003 0002 5002 0001 5001 0005000201920162018201520142020201720212022317281422722279949241 5834Customer-sited storage installations are growing rapidly,supported by high and increasingly volatile electricity pricesAs in other European markets,the rate of installation of storage combined with solar PV is growing rapidly due to a combination of factors:10 Battery cost declines Rising electricity prices A broadly supportive regulatory regimeSince 2019,small power generators have been able to receive compensation for their surplus solar generation.11 This has led to a rapid growth of customer-sited solar PV projects,which in turn has triggered concurrent growth in battery storage adoption.125Municipalities are starting to introduce their own measures to accelerate the energy transition Many Spanish municipalities provide tax reliefs for individuals and companies that install distributed PV for self-consumption.13,14 Although much of the adoption of solar+storage installations to date has been concentrated in the residential sector,adoption is starting to occur in the commercial sector as well as in number of energy communities.15 6Spains household electricity prices have nearly tripled since 2009 Spains household electricity prices now stand at over EUR 0.30/kWh on average.In addition,Spains reliance on fossil gas has increased price volatility in recent years.16,17,18,19 DenmarkUKGermanyItalySpainIrelandGreeceFrancePolandCroatiaBulgariaEU/kWh0.450.400.350.300.250.200.150.100.0507Many electricity customers have variable price contracts,making customer-sited solar+storage more attractive In addition to higher prices,many customers in Spain have contracts with market-linked prices,which means that electricity prices can fluctuate considerably from one hour(or day,or month)to the next.20 This variability,combined with Spains excellent solar resources,make the economics of combining solar with storage increasingly favorable.Spains renewable energy share is growing steadily,with both wind and solar breaking output records in 2022Total installed capacity in 2022(all sources)21118GWShare of wind and solar in the electricity mix in 202222over 32%26%Combined-cycle gas plants7%Cogeneration3%Coal21%NuclearSolar PV 10%Solar CSP 1%Other renewables 2%Hydro 7%Wind Power 23%Spains electricity mix(2022)22Total Supply=276 TWh23 9The market for utility-scale storage remains in its infancy The market for utility-scale batteries has been almost non-existent until recently as the market has lacked a clear policy and regulatory framework.However,ambitious renewable energy targets combined with recently announced government subsidies are expected to spur the adoption of larger-scale battery storage projects in the coming years.24,25,26 10The massive deployment of renewables is likely to require further growth in utility-scale storage The Spanish TSO currently maintains grid stability and security of supply mainly by relying on approximately 40 GW of thermal and nuclear plants.27 According to Spains NECP,the share of variable renewable energy sources in the power mix is expected to grow to 62%by 2030(from roughly 32%today).28 The planned growth of renewables creates a clear rationale to further scale-up utility-scale battery storage.29 Spains Planned Electricity Mix in 20302835%Wind 20%Solar PV Fossil Fuels 15%Hydro 8%Nuclear 7%Solar Thermal 7%Biofuels 4%Storage 3%Other 1%11A lack of supportive regulations,including an inability of operators to engage in“revenue stacking”isholding the market backThere are several factors that explain the relatively nascent stage of Spains utility-scale battery storage market:Price arbitrage is not yet sufficiently attractive in Spain as a stand-alone business model.30,31,32 Revenue stacking is currently not allowed.33 The risks with regard to double charging remain unclear.34 Capacity markets are not yet attractive for developers of storage assets in Spain.However,the government is developing new schemes to incentivise storage deployment,including adapting capacity markets under a new scheme named Renewable Energy Economic Regime.In addition,Spain has recently introduced subsidies specifically for storage systems co-located with solar PV.35 12Spains national targets will see the country meet 74%of its electricity needs from renewables by 2030 Spains energy transition targets are among the most ambitious in Europe.Unlike a number of other EU countries,Spains National Energy and Climate Plan(NECP)specifically includes targets and policies aimed at encouraging storage projects.In addition,Spain has developed a national storage roadmap that includes a target to achieve 20GW of storage by 2030.However,current levels of customer-sited storage adoption already exceed its 2030 targets.37Spains 2030 NECP targets36Spains 2030 storage roadmap targets37 20 GWStorage(including pumped hydro)0.4 GW Customer-sited Storage74%Renewables share of the electricity mix2.5 GWTotal Batteries1 GWSolar Thermalstorage needs2.7GWSolar PVself-consumption13Spains National Recovery and Resilience Plan(NRRP)is providing targeted support to storage projects The NRRP,a funding package from the EU,has promised a funding pot of 620m,extendable to 1.320m,specifically for energy storage and flexibility at both utility-and distributed-scales.38620mNRRP Budget for utility-scale storage38420mStorage to be Executed50mStorage R&D Executed150mStorage Deployment Executed142001501005001 Feb2 Feb3 Feb4 Feb5 Feb6 Feb7 Feb/MWhPrice arbitrage is possible,but has thus far been economically unattractive As it stands,price arbitrage has not yet been profitable as a stand-alone business model for battery storage projects in Spain.39,40,41 Since revenue stacking is not allowed,utility-scale battery storage plants must choose between price arbitrage in wholesale markets or operating in Spains capacity markets.42 To date,neither has been sufficiently attractive to mobilize investments at scale.Hourly Day-Ahead Market prices(teal)and min/max continuous market(orange)First week of February 202343 Daily average prices in 202243JanMaySepMarJulNovFebJunOctAprAugDec/MWh500400300200100015Recent changes to Spains renewable energy auctions provide additional support tostorage systems In the past,Spains renewable energy auctions were based on a first come first serve principle in terms of securing grid access.Recently,Spain has shifted its auction design and identified 34 grid access points.44 Projects bidding to secure access to these sites are scored according to certain criteria(technical requirements,socioeconomic impact,environmental impact,etc.)In addition,one of the criteria is the hybridization with storage technologies.16Continued growth of customer-sited battery storage is expected With NRRP funds and recently announced tax incentives,the market for customer-sited storage is expected to maintain its recent growth rates in the coming years.If energy communities grow,the market for medium-size batteries(in the tens of kWh)is likely to expand further.Currently,there are 289 energy communities in total,of which 9 have storage systems.45 Over a longer timescale,the uncertainty is higher,as a higher share of renewable generation is likely to lower wholesale electricity prices.If household electricity prices follow,this could weaken the economics of customer-sited storage.17The economics of utility-scale projects likely to improve due to recent policy and regulatory changes At the beginning of 2023,the Spanish government submitted a power market reform proposal to tackle the growing volatility of electricity prices.Among other changes,the proposals could provide further support to flexible assets such as storage.46 In another potentially transformative development for Spains fledgling utility-scale storage market,the government is developing legislation to allow revenue stacking.47 As these and other policy changes start to take effect,the utility-scale market is expected to play an increasingly important role in helping Spain achieve its broader energy and climate goals.181 UNEF(2022).Annual UNEF Report(2022)Informe Anual UNEF-Energa Solar.https:/www.unef.es/es/recursos-informes2 Energy Storage(2022).Ingeteam provides four-hour BESS for worlds biggest operational green hydrogen facility.https:/www.energy-storage.news/ingeteam-provides-four-hour-bess-for-worlds-biggest-operational-green-hydrogen-facility/3 Energy Storage(2022).Ingeteam supplied full BESS solution to Spains first solar-plus-storage project.https:/www.energy-storage.news/ingeteam-supplied-full-bess-solution-to-spains-first-solar-plus-storage-project/4 Energy Storage Substation for Grid Resiliency and MV Renewable Integration(2018).https:/ease-storage.eu/news/energy-storage-substation-for-grid-resiliency-application-at-caravaca/5 Cameron Murray(January 5 2023).Solar-plus-storage project with 200MWh battery system proposed in Spain,Energy Storage News,https:/www.energy-storage.news/solar-plus-storage-project-with200mwh-battery-system-proposed-in-spain/6 European Association for Storage of Energy(September 6 2018).Cortes-Muela:the largest pumped hydro storage station in continental Europe,https:/ease-storage.eu/news/la-muela-ii-is-the-largest-pumped-hydroelectric-storage-plant-in-europe/7 SolarPaces(2017).CSP Project Development,https:/www.solarpaces.org/csp-technologies/csp-potential-solar-thermal-energy-by-member-nation/spain/8 SolarPower Europe(2022).Electricity Storage for EU Renewable Deployment and Energy Resilience.https:/api.solarpowereurope.org/uploads/SPE_whitepaper_on_electricity_storage_final_e8ac25707d.pdf?updated_at=2022-12-06T09:06:32.026Z9 UNEF(2022).Annual UNEF Report.https:/www.unef.es/es/recursos-informes 10 See endnote 8 SolarPower Europe(2022).11 Spanish Government(2019).Royal Decree 244/2019.https:/www.boe.es/buscar/doc.php?id=BOE-A-2019-508912 Forbes(2019).Renewable Energy in Spain:From The Sun Tax To The Promotion Of Collective Self-Consumption.https:/ Spanish Ministry of Energy Transition and Demographic Challenge(2021).Self-consumption Roadmap.https:/www.miteco.gob.es/es/prensa/estrategiaalmacenamiento_tcm30-522655.pdf14 Otovo(2022).Subsidies for self-consumption PV installations.https:/www.otovo.es/blog/autoconsumo/subvenciones-placas-solares-autoconsumo/15 IDAE(2023).Energy Communities Visualizer.https:/informesweb.idae.es/visorccee/16 CountryEconomy(December 2009).Spain household electricity prices,https:/ 17 European Commission(2023).Quarterly Report on European Electricity Markets.Vol.15.https:/energy.ec.europa.eu/system/files/2023-01/Quarterly%20Report%20on%20European%20Electricity%20markets%20Q3%202022.pdf18 Eurostat 2023.https:/ec.europa.eu/eurostat/statistics-explained/index.php?title=Electricity_price_statistics#Electricity_prices_for_household_consumers19 Energy Guide(February 15 2023).Average Cost of Electricity per kWh,https:/energyguide.org.uk/average-cost-electricity-kwh-uk/20 Right Casa(2023).What Time is Electricity Cheapest in Spain?Hour by Hour,https:/ Statista(2023).Cumulative installed power capacity in Spain in 2022,by technology,https:/ Sladjana Djunisic(January 6 2023).Spains renewables share at 42.2%in 2022,Renewables Now,https:/ Red Electrica(December 22 2022).Wind and solar photovoltaic electricity generation break records in Spain in 2022,https:/www.ree.es/en/press-office/press-release/news/press-release/2022/12/wind-and-solar-photovoltaic-electricity-generation-break-records-Spain-2022 24 Cameron Murray(January 9 2023).Spanish state providing EUR 150 million in grants for co-located energy storage projects,Energy Storage News,https:/www.energy-storage.news/spanish-state-providing-e150-million-in-grants-forco-located-energy-storage-projects/25 See endnote 8 SolarPower Europe(2022).26 Timera Energy(2021).Battery Investment Focus Shift to Spain.https:/timera- Red Elctrica de Espaa(2023).Installed Capacity Dataset.https:/www.ree.es/es/datos/generacion/potencia-instalada28 European Commission(2019).Spains Integrated National Energy and Climate Plan.https:/energy.ec.europa.eu/system/files/2019-06/ec_courtesy_translation_es_necp_0.pdf29 Red Elctrica de Espaa(2023).Generation Dataset.https:/www.ree.es/es/datos/generacion30 University of Seville(2019).Energy Storage Economic Analysis via Li-Ion Batteries in the Electric Grid.https:/idus.us.es/bitstream/handle/11441/92223/TFM-1398-PEREZ.pdf31 Ramos Galn et al.,Papeles de la Economa espaola(2023).Analysis of Electric Storage Needs in Spain 2030.https:/www.funcas.es/wp-content/uploads/2023/01/PEE-174-WEB.pdf32 ATA Insights(2022).Webinar:Is Spain the Next Growth Market for Energy Storage?.https:/ See endnote 8 SolarPower Europe(2022).34 Spanish Ministry of Energy Transition and Demographic Challenge(2020).Renewable Energy Economic Regime.https:/energia.gob.es/electricidad/energias-renovables/Preguntas-Frecuentes/Paginas/FAQs-regimen-economico-energias-renovables.aspx?Faq=Almacenamiento.35 See endnote 5 Cameron Murray(January 5 2023).36 See endnote 28 European Commission(2019).37 Spanish Ministry of Energy Transition and Demographic Challenge(2021).Energy Storage Roadmap.https:/www.miteco.gob.es/es/prensa/estrategiaalmacenamiento_tcm30-522655.pdf38 Spanish Presidency(2021).Recovery,Transformation and Resilience Plan:Renewable Energies,Green Hydrogen and Storage.https:/planderecuperacion.gob.es/sites/default/files/2021-12/PERTE_Energias%20renovables_14122021.pdf39 See endnote 30 University of Seville(2019).40 See endnote 31 Ramos Galn