EU approves Spain’s €9 billion capacity market for generation, demand response and energy storage

energy-storage.news Jun 2, 2026

EU approves Spain’s €9 billion capacity market for generation, demand response and energy storage

Curated by Shubham · TechCapsules · Jun 2, 2026

AI-summarised brief · reviewed before publication

The European Commission has approved a €9 billion scheme to shore up Spain's energy capacity, open to new and existing projects including energy storage. The capacity market, akin to a capacity market, will run for ten years and aims to ensure sufficient capacity to produce, store, or flexibly consume electricity during periods of scarcity. Transmission system operator Red Eléctrica will remunerate capacity needed to meet the maximum acceptable hours of lost load per year, with winning projects selected through transparent bidding processes.

💡 Why It Matters

· This approval marks a significant step towards Spain's goal of reaching its national flexibility target, adopted under its National Energy and Climate Plan.
· By supporting the development of flexibility services, the capacity mechanism will help Spain's large-scale energy storage market continue to grow, building on the success of its initial PERTE tender.

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