Finance

EU approves Spain’s €700m energy storage subsidy plan

The European Commission on Monday greenlit a new aid scheme to enable Spain to deploy large-scale energy storage with co-financing of up to 85%.

By

Pilar Sanchez Molina

Mar 18, 2025

The European Commission on Monday approved a new aid scheme for the deployment of large-scale electricity storage in Spain.

Subsidies will be available for standalone energy storage sites, projects installed alongside renewable energy facilities, and storage planned as part of thermal power plants.

The €700 million ($763 million) program, run by Spain’s Ministry for Ecological Transition and the Demographic Challenge (MITECO), will offer matched-finance worth up to 85% of the cost of energy storage sites.

To be implemented via Spain’s Institute for Energy Diversification and Savings, the program will be funded from the European Union’s European Regional Development Fund Multiregional Program, out of its 2021-27 budget.

MITECO anticipates 80 to 120 energy storage projects will be financed by the scheme before 2030 and will have a total project capacity of 2.5 GW to 3.5 GW.

A public consultation exercise about the proposed funding program opened on Monday and will close on Friday.

Spain already backs energy storage with more than €600 million of NextGenEU funding which was allocated as part of Spain’s, post-Covid Recovery, Transformation, and Resilience Plan.

From pv magazine España.

Written by

Pilar Sanchez Molina
Pilar worked as managing editor for an international solar magazine, in addition to editing books, primarily in the fields of literature and art. She joined pv magazine in May 2017, where she manages the Spanish newsletter and website and helps write and edit articles for the daily news section in Latin America.
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