Spain’s Ministry for Ecological Transition (MITECO) has unveiled a €700 million grant programme supporting large-scale energy storage projects, including standalone battery systems, pumped hydro, thermal storage, and hybrid setups alongside renewables. With the European Commission’s approval, this initiative aims to deploy 2.5–3.5 GW of new storage capacity through over 100 projects by the end of 2029.
What the Scheme Covers
- Funding support: Up to 85 % of capex, covering civil works, storage systems, auxiliary equipment and related costs .
- Tech-specific rates:
- €250/kWh for standard battery energy storage systems (BESS)
- €300/kWh for grid-forming BESS and thermal storage
- €1,500/kW for new pumped hydro projects; €1,000/kW for existing ones .
- Application deadline: 15 July 2025, with projects expected to be operational by end‑2029 .
Why It Matters
- Grid resilience and flexibility: With renewables on the rise, solar and wind now generate over half of Spain’s electricity, the need for reliable energy storage has never been greater.
- Decarbonisation boost: Storage systems enable surplus renewable energy to be captured and released when needed, reducing dependence on fossil fuel backup plants .
- Decade-long impact: Spain is targeting approximately 22.5 GW of storage capacity by 2030 under its National Energy & Climate Plan, making this scheme a pivotal step forward.
Wider Significance
- European aid synergy: This national funding complements €600 million already channelled through the EU’s NextGenerationEU recovery plan, strengthening Spain’s clean-energy infrastructure .
- Economic and tech growth: The scheme is expected to fund 80–120 installations across Spain’s 17 regions, including Ceuta and Melilla, supporting local jobs, supply chains, and innovation .
What’s Next?
- Project pipeline activation: Following the July deadline, successful tenders will proceed to construction over the next three years to meet the 2029 operation target.
- Monitoring impact: Key metrics to follow include contributions to national capacity goals, decarbonisation achievements, and improvements in grid reliability.
- Model for Europe: Spain hopes this integrated approach, blending storage technologies and financial support, becomes a benchmark for other EU countries striving to balance renewables and grid stability.
Spain’s €700 million energy storage initiative represents a bold leap forward in modernising the national grid, enhancing renewable integration, and accelerating decarbonisation. By combining generous funding, diverse technology inclusion, and EU alignment, the scheme lays a solid foundation for a resilient, low‑carbon energy future.
