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Spain Fast-Tracks Grid Flexibility: 4.3 GW of Storage Clears Key Permits; August Adds Momentum for Hybrid Projects

September 19, 2025373

Spain's energy transition is entering a storage-first phase. Since 2022, more than 40 battery and pumped-storage projects—exceeding 4.3 GW—have advanced through environmental authorizations, with majors like Iberdrola, Enel Green Power, OPDEnergy, Statkraft and Grenergy in the mix. The pattern that stands out in 2025 is the rapid rise of hybrid wind-and-solar sites co-located with batteries, which smooth output, monetize price spreads, and help the system operator manage congestion.

Late-summer updates point to steady throughput in regional permitting dockets, with several hundred megawatts of utility-scale capacity processed in August alone and more entering scoping. For developers, Spain's direction reduces curtailment exposure and improves project bankability by stacking revenues (energy arbitrage, balancing services, and capacity mechanisms as they materialize).

For the grid, additional flexibility is a prerequisite to electrify industry, EVs and heat while phasing out residual coal. The next policy levers to watch: streamlined interconnection rules for hybrids, transparent capacity auction timetables, and faster data access for flexibility markets. Together with EU-backed modernization of storage assets across the bloc, Spain's pipeline signals a pragmatic shift from 'adding megawatts' to 'adding usable, dispatchable clean power'.

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