Spain is taking decisive action to modernize its power system and accelerate the shift toward a fully electrified economy. This week, the Council of Ministers approved a new royal decree designed to strengthen grid resilience, promote energy storage, and streamline regulatory procedures for renewable and hybrid projects.
The legislation, which integrates key elements of the earlier “Anti-Blackout Decree” (Royal Decree-Law 7/2025), marks one of the most ambitious efforts to date by the Spanish government to align infrastructure modernization with the country’s long-term climate and energy goals.
Reinforcing Oversight and Grid Stability
A central focus of the decree is improving the supervision and control of Spain’s electricity system. The National Commission on Markets and Competition (CNMC) will now have expanded authority to monitor market participants and ensure compliance with grid obligations. To enhance transparency, the regulator will publish quarterly reports detailing its oversight activities.
Every three years, an extraordinary inspection plan will assess the system’s capacity to manage supply replacements—an important safeguard as renewable penetration increases. Meanwhile, the grid operator, Red Eléctrica, has been tasked with proposing technical reforms within the next six months. These proposals will address power fluctuation responses, voltage variation thresholds, and coordination between transmission and distribution development plans—laying the groundwork for a more flexible and adaptive grid.
A Boost for Energy Storage and Hybridization
Perhaps the most significant measure is the government’s clear commitment to energy storage. Spain has now set a national storage target of 22.5 GW by 2030, underlining its recognition that storage is essential for balancing intermittent renewable generation and ensuring system reliability.
Crucially, the decree prioritizes the hybridization of new storage systems with existing renewable plants, especially on already developed land. This approach reduces the need for new grid connections and minimizes environmental impact—two common bottlenecks in renewable deployment.
Industry associations, such as the Spanish Photovoltaic Union (UNEF), have welcomed the move. UNEF noted that simplifying administrative procedures and recognizing previously completed environmental impact assessments will remove long-standing barriers for developers. The sector has long pushed for these reforms, which could unlock a new wave of commercial and industrial energy storage (C&I ESS) projects across the country.
Accelerating Electrification and Industrial Demand
Beyond generation, the decree also targets Spain’s broader electrification strategy. It introduces measures to encourage industrial activities and new economic sectors to connect to the electricity grid, thereby stimulating growth in clean-powered manufacturing and logistics.
To prevent speculation, demand access permits will now expire after five years, ensuring that available capacity is allocated efficiently. Applicants must also identify their CNAE (National Classification of Economic Activities) code, helping regulators match grid development with real industrial needs.
Additionally, the decree sets new deadlines for distributors to respond to network extension requests. Depending on the complexity of the work, response times will range from five to eighty days—an important improvement that could accelerate the rollout of electric vehicle charging and decentralized C&I ESS installations.
Repowering and Innovation Framework
Spain’s new regulation also adopts the European definition of repowering, encouraging operators to replace older assets with more efficient technologies. A national roadmap will be developed within nine months to outline specific objectives and support mechanisms, from technical upgrades to financial incentives.
To foster innovation, a simplified authorization framework has been established for R&D platforms testing new generation and storage prototypes. Companies will now be able to connect and disconnect different prototypes under a single operational license, reducing bureaucracy and promoting rapid technological development.
The decree also clarifies procedures for commissioning and shared evacuation infrastructure, enhancing legal certainty for developers managing complex, multi-facility projects. UNEF praised the more flexible milestone system, which better reflects on-the-ground realities while maintaining accountability.
Strategic Outlook
Spain’s latest decree demonstrates that energy storage is no longer a peripheral topic—it’s becoming a core pillar of the country’s electricity strategy. With clear targets, streamlined permitting, and stronger oversight, the stage is set for a new phase of investment in battery energy storage systems (BESS), hybrid solar-plus-storage projects, and C&I ESS solutions.
If implemented effectively, these reforms could position Spain as one of Europe’s most dynamic energy storage markets—where regulatory clarity and technical modernization drive not only system resilience but also industrial competitiveness in the clean energy transition.
