Europe’s Battery Boom: Why Spain and Portugal Are the Next Big Thing

In a sudden and widespread power failure, Spain and Portugal went dark for several hours last April, leaving thousands without electricity and hundreds of thousands of euros in losses. The blackouts, caused by a massive power failure, brought production to a halt at companies like Spanish meat processing firm Fribin, where hundreds of thousands of euros in losses were incurred.

The Wake-Up Call

The power failure was a wake-up call for companies across Spain and Portugal, which have since been investing heavily in battery storage systems to avoid similar disruptions. For Fribin's technology and systems director Andrés Altabás, the blackout was a nightmarish situation, with emergency systems unable to cope with the continued operation of refrigeration units.

The company's energy needs are "quite large," amounting to more than 25 gigawatt-hours a year, most of it for refrigeration. The business had been considering investing in a battery back-up system for years, but it had been judged too expensive. "And then came the blackout, and all of that together catalysed the investment," Altabás tells the BBC.

A Boom in Battery Storage

Since the blackout, battery storage capacity in Spain has risen almost sevenfold, from about 28 MW before the blackout to 193MW in April 2026, according to the grid operator Red Eléctrica. The IDAE, Spain's Institute for the Diversification and Saving of Energy, has awarded €827m in EU funds to 133 energy storage projects totalling 2,400MW, with around 80% of that being battery storage.

The new capacity will be close to 10 times the amount that Red Eléctrica currently registers on the Spanish grid. This boom in battery storage is good news for battery suppliers, with companies like Sungrow seeing an increase in demand and a clear evolution in customer requirements. Traditionally, commercial and industrial clients were looking for partial or full backup solutions, but today they are demanding more advanced capabilities, such as seamless backup.

A New Era in Energy Storage

The demand for seamless backup is particularly critical for sensitive environments such as hospitals and data centres. Delivery times are also crucial for buyers, currently under tight deadlines linked to EU funding programmes. Battery companies are being pressed to meet increasingly shorter delivery dates, with Alberto Bodegas from Sungrow stating that buyers are demanding more advanced capabilities.

The investment in battery storage is not limited to Spain, with Portugal also seeing a significant increase in capacity. Companies like Vista Alegre, the oldest and largest porcelain maker in Portugal, have installed energy storage systems to avoid disruptions. The company's facilities in the coastal city of Ílhavo are now equipped with modules with around 2MWh of storage capacity.

A Bright Future Ahead

The investment in battery storage is not only a response to the recent blackouts but also a way for companies to profit from selling energy into the general network. Fibrin has installed two back-up battery units, while Primus Ceramics has doubled its battery capacity to store more energy from the factory's solar panels. By the end of this year, Primus will have more than double its battery capacity, a move that will reassure the company after the stress of last year's blackout.

As the demand for battery storage continues to grow, it is clear that Spain and Portugal are at the forefront of a new era in energy storage. The investment in battery storage is a response to the recent blackouts, but it also represents a shift towards a more resilient and sustainable energy future.

Source: Joy Online