Naturgy has begun construction on a significant portfolio of battery energy storage systems (BESS) with a total capacity of 160MW in Spain. These projects, located in Madrid and Castilla-La Mancha, mark a crucial step in the company’s large-scale storage initiatives and the country’s broader energy transition.
Construction of Naturgy BESS Spain Projects
Naturgy has announced the start of construction for a portfolio of battery energy storage systems (BESS) across Spain, which will ultimately consist of ten sites with a combined capacity of 160MW and 342MWh of storage. The initial projects are located in the regions of Madrid and Castilla-La Mancha and represent the company’s first large-scale storage initiatives in the country.
The first project is a 100MW/200MWh BESS in Alovera, Guadalajara, Castilla-La Mancha, which will be connected to the Alovera substation. In Boceguillas, Madrid, Naturgy is developing a 40MW/80MWh BESS, while in Almadrones, Guadalajara, another 20MW/40MWh BESS is under construction. The financial investment for these initial three projects is approximately €100 million ($106 million).
Naturgy’s BESS initiatives are part of a broader strategy to enhance grid stability amidst the country’s renewable energy boom, which has seen an impressive 2025 surge of 5 GW in new solar approvals. The company plans to expand its BESS portfolio to 1.5GW by the end of the decade. This expansion includes projects in regions such as Extremadura, Andalusia, Catalonia, and Galicia.
BESS Projects in Australia and Chile
In addition to its Spanish efforts, Naturgy is also advancing BESS projects internationally. In Australia, the company is working on a 400MW/800MWh BESS in Victoria, which is co-located with the Berrybank 2 wind farm. This project is supported by a 19-year capacity contract, linking it to the 500kV Western Victoria Transmission Network.
Naturgy announced that construction on this Australian project will begin in 2025, with the anticipated completion and commissioning date set for 2027.
In Chile, Naturgy is constructing a 100MW/150MWh BESS on the site of a former coal-fired power plant. This project is notable for its location, as it repurposes infrastructure from a decommissioned fossil fuel facility to support renewable energy integration. The BESS is expected to be operational by the third quarter of 2025.
Supporting Renewable Energy and Grid Stability
The growing importance of energy storage in Spain is underscored by the European Commission’s approval of a €150 million ($161 million) investment initiative earlier this year. This program is vital as Spain unveils 820 MW solar energy storage capacity planned for the near future, aiming to facilitate renewable energy integration and ensure grid stability.
Naturgy’s investment in BESS projects both in Spain and internationally reflects a strategic commitment to renewable energy and energy storage. These projects are designed to address the challenges posed by the increasing share of renewable energy in the grid, including fluctuations in supply and demand and potential grid curtailment—instances where clean energy is wasted because the grid cannot absorb it. This grid stability is paramount as Spain continues to approve massive solar projects, including new installations like Plenitude’s 90 MW solar power plant and the recently acquired 163 MW solar portfolio by Velto Renewables.
A robust storage infrastructure ensures that the energy generated from these assets is fully utilized. This supports the entire clean energy ecosystem, which is bolstered by government support for Spain solar manufacturing and built upon a complex solar panel manufacturing process. Understanding the basics of solar panel manufacturing reveals how investments in grid stability ultimately support high-tech production that depends on specific solar panel raw materials and advanced solar panel manufacturing machines. Ultimately, the financial viability of the sector, detailed in a solar panel manufacturing plant cost breakdown, is strengthened when grid infrastructure can handle the growing output.
The construction of these BESS projects in Spain marks a significant milestone for Naturgy and the country’s energy sector. As Spain continues to expand its renewable energy capacity, the development of energy storage infrastructure will play a crucial role in ensuring the stability and resilience of the national grid.
Naturgy’s commitment to energy storage, both domestically and internationally, positions the company as a key player in the global energy transition. With ongoing projects and future expansions planned, Naturgy is poised to make a lasting impact on the renewable energy landscape.
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