Masdar, Endesa begin construction of €25.2 million battery storage portfolio in Spain

Abu Dhabi Future Energy Company PJSC – Masdar and Endesa on Thursday marked the start of construction of three battery energy storage projects in Spain. The projects will add 60.16 megawatts (MW) of battery storage capacity and 120.34 megawatt-hours (MWh) of storage to solar plants in Extremadura and Andalusia, representing a combined investment of €25.2 million.

The three projects are expected to be operational by the end of 2027.

The projects are Ardila, at the 44 MWp solar plants in Fregenal de la Sierra (Badajoz), and La Vega I and La Vega II, at two solar plants in Teba (Málaga). By storing part of the electricity the plants generate, they will help integrate more renewable energy into the grid and make the electricity system more flexible.

The projects are the first storage developments under the Masdar-Endesa partnership, established in 2024 when Masdar acquired a stake in a portfolio of Endesa’s photovoltaic assets in Spain.

Dr. Ibraheem Almansouri, Acting COO, Masdar, said Spain is one of Europe’s fastest-growing major economies and this growth requires secure, resilient power. These projects will help integrate more clean power into the grid and strengthen the stability of the electricity system.

"They demonstrate how strategic partnerships can accelerate the deployment of advanced energy technologies, strengthen grid resilience and support sustainable economic growth, and they build on the strength of our partnership with Endesa while expanding our Iberian portfolio. We look forward to continuing to invest in Spain and to supporting the country’s economic ambitions," he added.

All three systems will use lithium iron phosphate (LFP) batteries with grid-forming inverters. The technology provides synthetic inertia, mimicking the behaviour of a conventional thermal or hydro generating unit, and responds almost instantly to sudden changes in grid conditions, supporting the stability of the electricity system.

Ardila will provide 36.10 MW (72.20 MWh) of storage across 12 battery containers, enough to store the equivalent of the daily electricity consumption of around 8,100 Spanish households. La Vega I and La Vega II will each provide 12.03 MW (24.07 MWh) across four battery containers per site, together equivalent to the daily consumption of around 5,400 households.

In total, 50 jobs will be created during the construction of the three projects, with commitments to use European-origin components and services, including inverters, auxiliary systems, communications and integration, supporting the regional energy storage value chain.

At Ardila, the partners will also work with Fregenal de la Sierra Town Council to identify local improvement projects, with part of the budget reserved for training.

Research and technical validation will be carried out with CIRCE and the Institute for Research in Technology (IIT) at Comillas Pontifical University, including on-site tests and studies of grid-forming operation.

Masdar currently has 4.1 GW of operational capacity across the Iberian Peninsula, with around 1 GW under development. These projects continue Masdar’s strategy of partnering with industry leaders to scale renewable energy deployment worldwide, as it targets 100 GW of global capacity by 2030.

WAM