Spain Approves a €818M Energy Storage Push, Increasing Power Capacity by 2.2 GW

With a goal of completion by 2029, MITECO approves 126 projects supported by EU funds, including hybrid, battery, and thermal storage.

Under its most recent incentive program, Spain's Ministry for Ecological Transition and the Demographic Challenge (MITECO) has authorized funding for 126 large-scale energy storage projects. The European Regional Development Fund (ERDF) will co-finance the €818.3 million ($957.2 million) allocation for the years 2021–2027. The request received 1,750 submissions, resulting in a rise of about 17%, and the final allocation surpasses the initial budget of €700 million ($821 million). It is anticipated that the chosen projects will increase the nation's power capacity by 2.2 GW and its storage capacity by 9.4 GWh.

With 69 projects, hybrid storage systems make up the greatest portion of the approved projects, followed by 39 standalone battery initiatives. Three pumped storage projects and fifteen thermal storage projects have also been chosen. The majority of hybrid storage projects are combined with renewable energy sources; 38 of these projects use solar power, and 18 use wind power. Also, four projects link solar and wind power with storage systems, while nine projects integrate storage with thermoelectric facilities.

The program, which is carried out under the PINALM-FEDER framework, supports additional energy storage incentive lines funded by the national recovery plan, which have already attracted investments totaling €730 million ($857 million). Also, all approved projects have a deadline of December 31, 2029, and must be finished within 36 months following final approval. ERDF 2021–2027 funding is used by the Institute for Energy Diversification and Saving (IDAE), an organization within MITECO, to oversee the program.