Spain’s New Capacity Market: What It Means for BESS Revenue
Spain now has a capacity market: Orden TED/966/2026 was published in the BOE on 17 September and entered into force the next day.
The product is firm capacity, awarded through sealed-bid, pay-as-bid auctions run by Red Eléctrica and supervised by the CNMC, with a confidential price cap and a lower reserve price for existing plants; new investment in the main auctions is restricted to renewables, storage and demand.
Contracts run for 12 months for existing generation and storage, up to 15 years for new investment, and 1 to 10 years for demand, with transitional annual auctions from now until the first main-auction delivery period begins.
Storage is expressly eligible (Art. 2.1.b), and for BESS and pumped hydro the decisive parameter is not eligibility but the firmness coefficient the CNMC will set per technology and duration, which converts installed MW into the firm MW that can actually be sold.
In a coupled MIBEL, this is the reference point for what a Portuguese capacity mechanism is likely to look like, and for us at Nenuphar Advisors it confirms where BESS revenue is heading: capacity and arbitrage as the structural base, with ancillary services as a shrinking layer on top.
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