Spain now has a capacity remuneration mechanism. Orden TED/966/2026 of 15 September 2026, published in the BOE on 17 September and in force the next day, creates a capacity market for the peninsular system after European Commission state-aid approval on 29 May 2026. Red Eléctrica runs the auctions, supervised by the CNMC. Three auction types exist: main auctions for firm capacity delivered up to five years later (nine for new pumped hydro or offshore wind), annual adjustment auctions for plants already in service, and transitional auctions bridging the first delivery period. New investments may only be renewables, storage or demand response and can win contracts of up to 15 years; existing generation and storage get 12-month contracts, demand 1–10 years. Plants above 550 g CO2/kWh, with regulated income, or below 1 MW of firm capacity are excluded.
Payments reward firm MW — installed capacity multiplied by a firmness coefficient approved before each call, the key open parameter for batteries. Market participants quoted by trade press expect the first auction in the first half of 2027, once the operating procedures are approved.
For installers: co-located storage at C&I and utility PV sites gains a bankable revenue stream, and aggregators can bundle smaller assets above 1 MW firm; follow the firmness-coefficient resolution before sizing BESS.
An information digest prepared from official announcements and industry press; conditions change — always check the official source and the date of the entry before advising a customer.
