Companies across Europe are rapidly replacing fossil fuels with electricity to meet industrial energy needs, supported by subsidies from European Union funding programmes.
Although industrial electrification is helping reduce greenhouse gas emissions, it is also increasing businesses’ exposure to power outages and grid disruptions.
That risk became particularly clear in Spain and Portugal last year.
Businesses on both sides of the border are now investing in energy storage and backup power systems to prevent costly interruptions.
“Industry was among the first sectors to explore energy storage because companies cannot afford a sudden drop in production,” said Miguel Matias, founder of Self Energy, a Portuguese energy services company headquartered in the UK.
“A few hours—or even a few minutes—of backup power can prevent machinery damage and keep production running,” he added.
Recent extreme weather events and power disruptions have further accelerated investment in commercial and industrial energy storage.
In late January, Storm Christine knocked down thousands of electricity and communications poles across central Portugal. The damage left hundreds of thousands of people without power or communications, with some outages lasting for weeks.
The disruption has prompted companies and other organizations to strengthen their energy resilience.
Spain’s battery storage capacity has increased almost sevenfold since April last year, rising from approximately 28 MW before the blackout to 193 MW by April 2026, according to grid operator Red Electrica.
Significantly more battery capacity is also planned for the Spanish electricity grid.
In December, Spain’s Institute for Energy Diversification and Savings, known as IDAE, awarded €827 million in EU funding to 133 energy storage projects with a combined capacity of 2,400 MW. Batteries account for approximately 80% of the planned capacity.
Once completed, the new projects will provide nearly 10 times the battery storage capacity currently operated by Red Electrica on the Spanish grid.
The expansion is creating new opportunities for battery storage manufacturers and suppliers.
“Demand is increasing, but customer requirements are also evolving rapidly,” said Alberto Bodegas of battery energy storage company Sungrow.
Commercial and industrial customers have traditionally sought partial or full backup power solutions, Bodegas explained.
Today, customers are increasingly requesting advanced capabilities such as seamless backup power. This technology switches facilities from the grid to battery backup instantly, without noticeable disruption to operations.
Seamless power backup is especially valuable in sensitive facilities, including hospitals, data centers and other sites where even brief interruptions can cause serious problems.
Fast delivery is another major priority for buyers working against tight deadlines linked to EU funding programmes. Battery storage companies are therefore under increasing pressure to deliver systems within shorter timeframes, Bodegas said.
Source: www.bbc.co.uk