Profitability of electric batteries in Iberia

Profitability of electric batteries in Iberia

Decarbonisation efforts will require the use of energy storage technologies.

Portugal has already awarded subsidies to electric batteries via auctions and Spain is planning on holding auctions for storage technologies. Using Frontier’s Storage Dispatch Model, Intralinks and Frontier Economics have prepared a report looking at the profitability of electric batteries in Iberia. The report explores the following:

  • A description of the key factors that make batteries an attractive investment opportunity;
  • The revenue sources for battery investments, with a focus on day-ahead, intraday and balancing markets; and
  • An estimate of current profitability and a discussion of the future outlook.

Frontier’s Storage Dispatch Model calculates the optimal dispatch of energy storage technologies, such as pumped hydro and batteries. It takes into account their physical characteristics and the electricity prices in several markets: day ahead, secondary reserve and tertiary reserve.

In combination with our Investment and Dispatch Power Sector Model, which forecasts power prices, it allows us to estimate the revenues, costs and internal rate of return of any investment in energy storage.

You can find our report in full by clicking the following link.