Spanish Revenue Stack

Overview of revenue streams available to battery storage in the Spanish market


Available Markets

In Spain, battery storage assets can participate in the following revenue streams:

Energy Markets

Market Granularity Description
Day-ahead 15-minute Main wholesale market cleared day before delivery
Intraday Auctions and Continuous Market 15-minute Continuous trading up to 5 minutes before delivery

Ancillary Services

Service Product Duration Procurement Description
aFRR Capacity 4-hour blocks Day-ahead Secondary frequency control capacity reservation
aFRR Energy 15-minute Real-time Energy payments for activated aFRR

Note: Unlike Germany, Spain does not have a Frequency Containment Reserve (FCR) market for battery storage participation.

Day-ahead Market

The day-ahead market is the primary wholesale market where most energy is traded. Key characteristics:

  • 15-minute granularity – finer resolution than hourly markets in other countries
  • Single clearing – market clears once per day for all delivery periods
  • Pay-as-cleared – all accepted bids receive the marginal clearing price

Batteries participate by offering to charge during low-price periods and discharge during high-price periods, capturing the spread.

Intraday Market

The intraday market allows participants to adjust positions after the day-ahead market closes:

  • Continuous trading – trades executed as matched, not in discrete auctions
  • Gate closure – 5 minutes before delivery (one of Europe’s shortest)
  • Price volatility – prices can deviate significantly from day-ahead as forecasts update

This market is increasingly important for batteries as renewable forecast errors create trading opportunities close to real-time.

Frequency Response Services

Automatic Frequency Restoration Reserve (aFRR)

aFRR is secondary frequency control that restores frequency after primary response activation:

  • Asymmetric products – separate positive (upward) and negative (downward) capacity
  • 4-hour blocks – capacity contracted day-ahead
  • Pay-as-bid – capacity payments at bid price
  • Full activation time – 5 minutes
  • Minimum bid – 1 MW

aFRR Energy Activation

When aFRR capacity is called upon, energy payments are made separately:

  • 15-minute granularity – energy settled at quarter-hour resolution
  • Pay-as-cleared – through the PICASSO platform
  • Real-time procurement – activated based on system needs