Next Tuesday, the Congress of Deputies will have to, among other things, finally creates an adequate framework for the development of electric power storage with batteries in Spain. This may seem a minor thing, but let me try to explain why it is much more important for our country than it seems at first glance.
Beyond the storage needs of our electrical system, there is a relevant geostrategic issue. In Europe, where we do not practically fossil energy out of Norway and the low quality coal of Central Europe, we have two renewable poles: southern Europe, for its solar resource, and the North Sea, for its wind resource. These two regions are destined to be the two energy poles of the continent and, in addition, they should become the areas where electricity is more competitive, with their advantages for the attraction of new electro -intense industrial activities.
These two regions, in a way, compete with each other. The South Solado and the North Wind they want to lead the generation of cheap energy in Europe. At certain times it seemed that the enormous wind potential of the North Sea would be that energy center, but in recent months a technological factor has appeared that can tip the balance towards the south: the batteries.
Until recently, batteries were a relatively expensive technology, but this has changed in the last year and a half. Around 15 months ago in the West we were surprised with information on battery prices in China, which seemed to be below $ 100 per kilowatt ($/kWh). This was always the theoretical price in which the electric car was supposed to be cheaper to manufacture than the thermal, but also reflects the possibility of storing electricity at relatively low costs. While that was the price in China, in Europe we talked about almost double.
A year later, prices in Europe are approaching the Chinese price of the spring of 2024. However, in China the price has dropped even more and we have begun to see prices below $ 60/kWh. This evolution is usual in disruptive technologies as economies of scale and technological improvement are gaining. It is the same thing that happened with the solar panels a few years ago and, therefore, solar energy became the cheapest way we have to generate electricity. We do not know how long those prices will take to Europe, but seeing the evolution of costs probably not too much. And if 100 $/kWh was a game changer [disruptor] In the world of electric mobility, the prices we now see in China represent the same change at the level of electricity generation: they will allow us to have renewable energy at any time of the day with a relatively small additional cost.
The batteries serve to store any type of electricity. They also serve to store wind energy, but their maximum advantage is in combination with solar energy. Unlike wind, where we can have several days in a row with a lot of wind or very little, in solar energy there is a daily cycle and you can store and download every day, which allows you to amortize your investment much faster. The batteries fit with solar energy such as the fairy shoe fit with Cinderella’s foot.
The generation with solar energy is much cheaper in the Iberian Peninsula than in other European countries, including southern Europe. And, in addition, it is less seasonal. In Germany, for example, solar energy generates in the most sunny months almost 10 times more electricity than in winter. In the peninsula, this difference is only triple. We have many sunny days in winter. A battery in Spain is especially useful and will be able to have a practically continued use.
Fast rhythm
Spain can install batteries at a very fast pace. California is installing more than 5,000 megawatts (MW) of batteries a year and Spain can do the same with the proper regulation. In a few years we could take renewable energy at any time of the day and reduce the large price peaks that we have at certain times, which today are covered with gas and water at a gas price. In fact, the batteries would introduce enormous competitiveness in the electricity market and avoid that situation that occurs for many months a year of “paying water at the price of champagne.” Unlike traditional technologies, batteries, as well as solar energy, they will allow access to a multitude of new actors of all sizes and our evolution to a really competitive electrical market.
In times as dynamic as the current ones, the story never gives second opportunities. Spain has the opportunity to establish a modern regulation on storage with batteries to be able to squeeze all our natural advantages in the production of renewable energy, maintain the pace of solar energy installation and benefit the local value chain, where many of the equipment and components are manufactured for these facilities.
Everything is ready, we just need the exit gun with the validation of the RDL 7/2025. Hopefully everyone acts responsibly and does not happen what happened in Catalonia the other day with the decree that regulated the batteries. If we want to lead energy production in Europe and the attraction of industry, we must be clear that this is the way. THE ROAD OF THE SUN. The path of batteries.
