Spanish and Portuguese firms invest in
A major 2023 power outage in Spain and Portugal caused business losses, spurring increased investment in battery storage systems with some EU funding.
A massive power failure on 28 April last year left Spain and Portugal dark for several hours, causing companies to scramble and incur heavy financial losses. This event has catalysed a major shift, with firms across the Iberian Peninsula now investing heavily in battery storage systems to protect their operations from future grid disruptions.
According to the BBC, the Spanish meat processor Fribin was midway through a morning shift when the blackout hit, forcing a complete production halt. Andrés Altabás, Fribin's technology and systems director, stated that emergency systems lacked the capacity for continued operation, leading to losses of hundreds of thousands of euros as meat had to be discarded. The company, which uses more than 25 gigawatt-hours of energy annually, subsequently invested around €1.5 million in battery backup modules.
Surge in Storage Capacity
The threat of disruption has driven a dramatic increase in battery storage capacity. Spain's grid operator, Red Eléctrica, reports that national battery storage capacity has risen almost sevenfold since the April blackout, from about 28 MW beforehand to 193MW in April 2026. Furthermore, Spain's Institute for the Diversification and Saving of Energy (IDAE) awarded €827 million in EU funds in December to 133 energy storage projects totalling 2,400MW, with around 80% dedicated to battery storage.
Miguel Matias, founder of the energy services company Self Energy, notes that the industrial sector has been a first mover in adopting storage. He explains that even a backup lasting minutes can prevent machine damage. Storm Kristin's impact in Portugal at the end of January, which cut power for hundreds of thousands, provided another recent spur for investment.
Evolving Customer Demands
Battery suppliers are witnessing a clear evolution in requirements. Alberto Bodegas from battery storage company Sungrow says clients now demand more advanced capabilities like seamless, instantaneous backup, which is critical for hospitals and data centres. Delivery times have also become crucial, with companies facing tight deadlines linked to EU funding programmes.
| Company | Location | Action/Investment | Storage Capacity |
|---|---|---|---|
| Fribin | Spain | Invested ~€1.5m in battery modules | Two 5 MWh modules (10 MWh total) |
| Vista Alegre | Portugal | Installed energy storage systems | ~2 MWh |
| Primus Ceramics | Portugal | Expanding existing battery capacity | More than double 2022 capacity by end of year |
Case Studies in Resilience
Portuguese porcelain maker Vista Alegre decided to install its storage systems in 2022, leveraging EU Recovery and Resilience Plan funds. Emília Encarnação of Vista Alegre said the blackout accelerated this process, though it caused irreparable losses at plants with continuous production. The batteries now provide backup and allow the company to sell excess energy back to the grid.
At Primus Ceramics near Aveiro, a diesel generator prevented major losses during the blackout by keeping its electric roller kilns running. CEO Paulo Almeida told the BBC the experience accelerated plans for resilience. The company, which already had two batteries installed in 2022 for backup and energy trading, will more than double its battery capacity by the end of this year to store more solar energy. Almeida recalled the stressful night of the blackout, deciding whether to stop production or wait for power, which returned just in time.
