The CNMC makes progress in the regulation of electricity storage
Published on 10th Oct 2024
The regulator is proposing a regulation establishing operating patterns for storage facilities
The variability in production that characterises renewable generation sources makes electricity storage a key tool for the management and flexibility of the electricity system, allowing electricity to be stored during periods of higher renewable energy production and released during periods of higher demand and lower renewable production.
Such is the importance of electricity storage for the optimal development of the Spanish electricity system and the potential of this type of facility, especially batteries, that in February 2021, the Spanish Government's Council of Ministers approved the Energy Storage Strategy, which sets the objective of reaching 20 GW of installed storage capacity by 2030 and 30 GW by 2050.
As we mentioned in our newsletter on energy storage and its regulation published in February 2023, it is essential to continue developing the regulations on energy storage in order to contribute to a more solid legal framework for energy storage in Spain.
In this sense, the development of a clear, well-defined, and stable regulatory framework for energy storage is essential to generate confidence and legal certainty, attract investment, accelerate the energy transition, and achieve decarbonisation objectives.
In this regard, the National Commission for Markets and Competition (Comisión Nacional de los Mercados y la Competencia, "CNMC"), following a collaborative process involving distribution network operators and representatives of storage facility associations, has initiated the public information process on the proposed Resolution establishing the operating patterns for storage facilities for the determination of access capacity to distribution networks (hereinafter, "Draft Resolution").
This Draft Resolution, which complements the provisions of the CNMC Resolution of 27 June 2024, establishing the detailed specifications for determining the access capacity of generation to the transmission grid and distribution networks, stands out for establishing the operating patterns of storage facilities for determining the access capacity to distribution grids.
The purpose of the aforementioned operating pattern for storage facilities is to establish the possibilities for injecting and/or absorbing power from or to the grid, and to define the time frame in which storage facilities may inject or absorb power from the grid. This operating pattern, which is the same for all storage facilities and for all days of the year, is as follows:
Possibility of grid feed-in: Operation in generation mode.
- From 0.00 a.m. to 10:59 a.m.
- From 18:00 hours until 23:59 hours.
Possibility of absorbing power from the grid: Operation in consumption mode.
- From 0.00 hours to 7.59 hours.
- From 11:00 am to 5:59 pm.
It is important to emphasise that outside the above-mentioned patterns storage facilities may neither absorb nor feed energy into the grid.
Likewise, the Draft Resolution establishes that the access and connection permits for storage facilities will define a single value for grid injection access capacity and a single value for grid absorption access capacity, and these two values may be different from those requested.
The objectives pursued with the introduction of these operating patterns are as follows:
- Maximising grid efficiency: ensuring that grid capacity is used optimally, avoiding overloads, and facilitating better integration of renewable energy sources.
- Ensuring grid stability and security: ensuring that electricity grids maintain their stability and can manage the variability introduced by storage facilities.
To ensure compliance with the operating patterns, the Draft Resolution proposes several measures:
- The obligation to install control devices that prevent the injection and/or absorption of power into the grid outside the patterns established for this purpose.
- The possibility to revoke access and connection permits in cases of non-compliance with the expected patterns of operation and the requirements for control devices.
Should you wish to know more about the issue discussed in this note, please do not hesitate to contact one of our experts listed below or your usual contact at Osborne Clarke.
