Businesses in Spain and Portugal are significantly expanding their battery storage capacity to mitigate the impact of power outages and ensure production continuity. This surge in investment follows major disruptions that affected the Iberian Peninsula last year, prompting firms to seek reliable backup power solutions.
The industrial sector, in particular, has been proactive in adopting storage systems to prevent costly production halts. "The industrial sector has been one of the first to look at storage systems, since it can't have its production drop off too abruptly," said Miguel Matias, founder of Self Energy, a Portuguese energy services company. "A backup for a few hours, or even minutes, might guarantee that machines don't get damaged."
Recent incidents have further spurred investment. In late January, Storm Kristin caused widespread power and communication outages across Portugal, with hundreds of thousands of people affected, some for weeks. This event underscored the vulnerability of existing infrastructure.
In response, Spain has seen a dramatic increase in battery storage capacity. According to the grid operator Red Eléctrica, capacity has risen nearly sevenfold since April of the previous year, from approximately 28 MW to 193 MW in April 2026. Significant future capacity is also planned, with the Institute for the Diversification and Saving of Energy (IDAE) awarding €827 million in EU funds to 133 energy storage projects totaling 2,400 MW in December. Roughly 80% of this funding is allocated to battery storage, which would represent nearly a tenfold increase over current registered capacity on the Spanish grid.
This growing demand has led to an evolution in customer requirements. Alberto Bodegas from battery storage company Sungrow noted that while clients traditionally sought partial or full backup, they now demand more advanced features. "Customers are demanding more advanced capabilities, such as seamless backup, meaning the switch from grid to backup occurs instantaneously and without any noticeable interruption." This seamless transition is particularly critical for sensitive operations like hospitals and data centers.
Battery suppliers are also facing pressure to meet tight delivery schedules, largely driven by the deadlines associated with EU funding programs. Companies are working to fulfill orders within increasingly shorter timeframes to ensure clients can capitalize on available financial support.