Together, these benefits make long-duration storage a strategic element in ensuring the sustainability, competitiveness and security of the energy system of the future.
Challenges and barriers to large-scale implementation
Despite technological advances, long-duration energy storage faces some challenges to its mass deployment. The main obstacles include high investment and operating costs, especially in emerging technologies that have not yet achieved economies of scale. The volatility in the price of raw materials such as lithium and nickel hinders structural cost reduction and limits competitiveness compared to conventional solutions.
There are also regulatory and administrative barriers, such as the lack of a clear regulatory framework, red tape and the absence of well-defined capacity markets that encourage private investment. Access to the electricity grid and the need to adapt infrastructure to integrate storage systems also pose significant technical and logistical challenges. Finally, the lack of robust business models and mechanisms to monetise the services provided by storage (such as demand management, energy arbitrage or grid backup) slows down its large-scale adoption.
Iberdrola’s role in promoting long-term storage
Iberdrola is one of the key players in promoting long-duration energy storage worldwide. The company is leading flagship pumped hydro storage projects and investing in advanced technologies such as large-capacity batteries and hybrid systems, integrating storage with renewables to maximise the use of clean energy.
We also actively participate in the development of new business models and public–private partnerships to accelerate the integration of these technologies into the electricity system. In addition, we support innovation and industrialisation in the industry, creating jobs and strengthening the national value chain in energy storage. Our strategic commitment strengthens the resilience of the grid and facilitates the transition to a more sustainable and secure energy system, in line with the climate and energy independence objectives of Spain and Europe.