New Revenue Stream for Batteries in Spain: The Voltage Control Market Arrives in Q2 2025!
New Market, New Opportunity: Voltage Control for Batteries in Spain (Q2 2025)
Spain is rolling out a dedicated Voltage Control Market in Q2 2025, introducing a fresh revenue stream for batteries and flexible assets. Previously, voltage regulation was handled within the Technical Restrictions Market, but this shift will establish a separate, pay-as-bid system, compensating assets that provide reactive power (MVAR).
What’s in It for Batteries?
With power electronics enabling them to absorb or inject reactive power, batteries will now be able to participate alongside conventional assets such as CCGTs and hydro plants.
How Profitable Could This Be?
Initial pricing tests showed 50-100 €/MVAR/h for conventional power plants and 25-75 €/MVAR/h for renewables—demonstrating a strong market value for reactive power. As more players enter, competition is expected to adjust pricing levels.
Maximizing Value in This Market
Success in this evolving space will depend on market positioning, bidding strategies, and understanding regional price fluctuations. Our company specializes in data-driven insights on locational pricing, curtailment risks, and grid conditions, helping you capture the full value of voltage regulation services.
Is Your Asset Ready?
We provide tailored analyses on voltage control revenue potential by grid node and market zone, giving you the intelligence needed for smarter decision-making.
Get in touch today and start leveraging this new market opportunity!
Wind Capacity Factor in Spain Keeps Dropping – What’s Behind It?
In 2024, Spain reached a milestone in its energy transition, with 56% of its electricity generation coming from renewable sources. Wind energy led this progress, accounting for 23% of total production.
However, despite this growth, the wind capacity factor on the Iberian Peninsula experienced a decline, settling at 22.16%, representing a drop of nearly 1.5 percentage points compared to the previous year. This reduction is primarily attributed to curtailment, that is, grid constraints that prevent full utilization of available renewable generation.
Curtailment has become a growing challenge for renewable energy in Europe. In 2023, more than 12 TWh of renewable electricity was curtailed in the European Union due to grid congestion. Spain is among the countries most affected by this phenomenon.
The expansion of renewable energy has at times outpaced the capacity of existing electrical infrastructure, leading to these limitations. Without clear data on curtailment per transmission grid node and markets, investors and developers may be underestimating losses and associated risks.
Our company provides accurate curtailment estimates per node and market, enabling industry players to make strategic decisions based on real data. By understanding where and how much renewable production is being lost, it is possible to mitigate risks and optimize project profitability.
If you want to understand the impact of curtailment on your project, we invite you to request an analysis with us. Discover how our solutions can reduce uncertainty and increase the profitability of your renewable energy investments.
Benefits of Our Services:
- Less uncertainty, higher profitability: Minimize curtailment-related losses and maximize your return on investment.
- Scenario-based studies: Detailed analyses reflecting current market and grid conditions.
- Node-specific grid data: Granular information allowing for more effective project planning and execution.
Contact us for a detailed estimate and find out how we can help you optimize your renewable energy production in an evolving energy landscape.