107 MW BESS Plant in Picassent: What It Means for the Energy Sector

Key data

Sargao Energy, SL has authorization to build one of the largest battery energy storage systems currently authorized in the Valencian Community. The General Directorate of Energy Policy and Mines has granted, through a resolution of March 1, 2026, prior administrative authorization for the Picassent BESS 132 kV project, with an installed capacity of 107,912 MW.

The resolution, published in the BOE on May 21, 2026, also includes authorization for the evacuation infrastructure necessary to connect the installation to the 132 kV electrical grid. This administrative milestone opens the door to the following project phases: administrative construction authorization and, subsequently, effective commissioning.

What does this regulation establish?

The resolution grants Sargao Energy, SL the prior administrative authorization for two differentiated elements of the project:

• The energy storage installation Picassent BESS 132 kV, with an installed capacity of 107,912 MW.
• The associated evacuation infrastructure, necessary to connect the plant to the 132 kV electrical grid.

A BESS (Battery Energy Storage System) is an installation that stores electrical energy in batteries to release it later when the grid needs it. Its main function is to absorb surpluses from renewable generation—especially solar and wind—and return them to the system at times of higher demand or when renewable generation drops.

Prior administrative authorization is the first formal step in the authorization procedure for electrical installations in Spain. It does not directly enable construction: after it, the promoter must obtain administrative construction authorization and, finally, operating authorization before operating the installation.

Economic and operational impact

For the energy sector, this authorization has relevant implications on several levels:

• Electricity market: A 107,912 MW BESS plant has the capacity to actively participate in the markets for system adjustment services, including frequency regulation and grid congestion management.
• Renewable integration: The installation facilitates the absorption of renewable generation surpluses in the Valencian grid, reducing spillage and improving the profitability of solar and wind plants in the area.
• Grid stability: Contributes directly to the stability of the Valencian electrical system, a priority objective of the system operator in a context of increasing renewable penetration.
• Infrastructure investment: The authorization of evacuation infrastructure at 132 kV also implies investment in the transmission network, with necessary coordination with Red Eléctrica de España.
• Energy transition: The project is framed within the objectives of the National Integrated Energy and Climate Plan (PNIEC), which requires massive deployment of storage capacity to achieve renewable targets by 2030.

Who does it affect?

• Sargao Energy, SL: Project owner company, which must now advance in the following phases of the administrative procedure to be able to construct and operate the installation.
• BESS project promoters and developers in Spain: This authorization is a reference for the process and administrative timelines applicable to similar projects.
• Renewable generators in Valencia: The new storage capacity improves the conditions for integrating their production into the local grid.
• Municipality of Picassent (Valencia): The territory where the installation will be located, with urban planning, environmental, and local planning implications.
• Grid operators and electricity retailers: The new BESS capacity modifies the availability of flexibility services in the Valencian electrical system.
• Investors and energy infrastructure funds: The authorization confirms the administrative viability of the project and reduces regulatory risk for potential investors.

Practical example

A promoter of a 50 MW photovoltaic solar park located in the l'Horta Sud region, near Picassent, typically faces spillage restrictions during peak solar generation hours (midday) because the local grid cannot absorb all production.

With the commissioning of the Picassent BESS 132 kV system of 107,912 MW, part of those surpluses could be absorbed by the battery and released during peak demand hours (afternoon-evening), reducing spillage and improving the utilization factor of the solar park. For the solar promoter, this translates to more energy sold and better return on investment without needing to expand their own evacuation capacity.

For Sargao Energy, SL, the next concrete step after this authorization is to request the administrative construction authorization from the General Directorate of Energy Policy and Mines, providing the definitive execution project and the corresponding environmental and urban planning permits.

What should companies do now?

1. If you are Sargao Energy, SL: Initiate procedures to obtain administrative construction authorization, which is the next mandatory step after the prior authorization granted by this resolution.
2. If you develop BESS projects in Spain: Analyze the Picassent BESS 132 kV file as a reference for the documentary requirements, timelines, and conditions that the General Directorate of Energy Policy and Mines applies to this type of installation.
3. If you are a renewable generator in Valencia: Evaluate how the new storage capacity on the 132 kV grid in the area may affect your access and connection conditions, and whether it opens opportunities for flexibility service agreements.
4. If you are an investor in energy infrastructure: Record this authorization as a signal of project progress and update the regulatory risk analysis associated with Sargao Energy, SL and the Picassent BESS project.
5. If you are an operator or consultant in the electrical sector: Incorporate this new storage capacity into the planning models of the Valencian grid and into the analyses of adjustment services available in the system.