On February 11th and 12th, the third edition of the Energy Storage and Hydrogen Summit, organized by the Spanish Photovoltaic Union (UNEF), took place.
During these days of debate, the focus was primarily on storage, with an emphasis on hybridization and stand-alone solutions. Hydrogen was also discussed, though to a lesser extent, covering topics such as its transportation to the final consumer and its possible derivatives.
Some of the challenges discussed included:
Urban Planning: This remains the major bottleneck. Stand-alone projects are prioritized near electrical substations (SET), but they are subject to land-use compatibility.
Legal Uncertainty: There is still legal uncertainty regarding hybridization with BESS. Aragón is one of the autonomous communities making the most progress in considering access capacity rather than installed power to determine the competent processing authority.
Permitting: Environmental agencies and local governments, due to a lack of knowledge, are requesting full Environmental Impact Assessments (EIA) for permit processing. The DUP should serve as a viability mechanism for stand-alone projects.
Operation: Both hybrid and stand-alone projects can participate in technical restrictions. The key difference lies in storage capacity.
Firm and Flexible Capacity: The publication of firm demand capacity is expected in July 2025. Flexible access will be categorized into three types:
- Pattern-based.
- Based on N-1 availability criteria.
- 100% flexible with real-time dispatching.
Capacity Mechanism: A five-year outlook is expected, with a maximum service provision period of 15 years. Transitional auctions will be needed until the first main auction takes place.
Storage Tariffs: The issue of storage tariffs is still pending. It is anticipated that the CNMC (National Commission on Markets and Competition) is not in favor of making exceptions, as storage in generation can help alleviate congestion and reduce tariffs.
Local Flexibility Markets: The proposed network code for active demand response is under review. It is expected to be approved by the European Commission by the end of 2025, after which TSOs will have six months to propose and six more months to implement solutions, placing us at the end of 2026.
Access Conflicts: These appear to be resolved according to the regulations in place at the time of filing.
Groupings: The CNMC is siding with distribution companies when they argue that some groupings are artificially created.
At Circle Energy, we advocate for the advancement of green hydrogen, developing projects for hydrogen production and its derivatives through renewable energy initiatives. Additionally, we focus on storage through stand-alone projects or hybridization with other renewable technologies.
