Spain allocates funding for 9.4 GWh of large-scale storage projects

The Spanish Ministry for Ecological Transition and the Demographic Challenge (MITECO) has selected 126 projects to receive a total of €818.3 million in funding from the European Regional Development Fund (ERDF 2021–2027). The call attracted strong interest, with 1,750 applications submitted, prompting an almost 17% increase on the original €700 million budget allocation.

Among the beneficiaries – which can be viewed here – hybrid storage projects dominate, with 69 awards, followed by standalone batteries (39) and, to a lesser extent, thermal storage (15) and pumped storage (3). Altogether, the selected projects will add 2.2 GW of power output and 9.4 GWh of storage capacity.

The renewable technologies paired with hybrid storage projects are mainly solar photovoltaic (38 projects) and wind (18 projects). In addition, nine initiatives involve thermoelectric hybridisation, while the remaining four projects combine storage with both photovoltaic and wind generation.

Once operational, the new facilities will contribute to greater flexibility in the electricity system and promote the integration of renewable energies, accelerating decarbonization by ensuring a supply of cheaper, emission-free energy, the Ministry said in the announcement on December 30.

The projects must be completed within a maximum of 36 months from the date the aid is granted, with all work finished no later than December 31, 2029.

The European Regional Development Fund (ERDF) aims to reduce regional development disparities in the EU by financing sustainable investments in less developed and transition regions. Accordingly, funding for energy storage projects was allocated by autonomous community, with higher budgets for less developed areas.

As a result of the latest storage funding program, Andalusia will host 31 projects, the Valencian Community 15, and Galicia 11. They are followed by Castile and León (10), and Catalonia and the Canary Islands (9 each). Extremadura and Castile-La Mancha will each develop 8 projects, while Aragon and the Community of Madrid will have 7 each. The remaining projects are distributed across Cantabria, Asturias, Murcia, the Basque Country, and the Balearic Islands.

These ERDF grants complement earlier support schemes launched by MITECO and the Institute for Energy Diversification and Saving (IDAE) using NextGenEU funds under Spain’s Recovery, Transformation and Resilience Plan (PRTR). Those programmes promote innovative hybrid, standalone, thermal and pumped-storage projects, as well as R&D initiatives and island-based developments, with total incentives amounting to €730 million.