Spain’s Ministry for the Ecological Transition and the Demographic Challenge (MITECO) has announced a major funding initiative worth €700 million to boost large-scale energy storage projects across the country. The scheme aims to deploy between 2.5 and 3.5 gigawatts (GW) of new storage capacity, enhancing the flexibility and resilience of the national power system while enabling deeper integration of renewable energy sources.
This new support programme, open for applications from 2 June to 15 July 2025, will be managed by the Institute for Energy Diversification and Saving (IDAE) and co-financed by the European Union’s FEDER 2021-2027 funds. The aid is targeted at various storage technologies, including stand-alone battery systems, reversible pumped hydro, thermal storage, and hybrid systems integrated with renewable generation plants—either new or existing.
The funding covers eligible costs such as civil works, storage equipment, auxiliary systems, and associated expenses. More than 100 projects are expected to be financed, collectively representing over 9 gigawatt-hours (GWh) of storage capacity. Maximum aid amounts are capped depending on technology—for instance, €250/kWh for basic stand-alone systems, €300/kWh for systems with grid-forming capabilities or thermal storage, and up to €1,500/kW for new pumped hydro installations.
Each project must be completed within 36 months from the grant award and no later than 31 December 2029. To assist applicants, IDAE will hold an informational webinar on 5 June.
The aid is also distributed regionally, with higher allocations directed to less developed or transitioning regions to address socio-economic disparities. For example, Andalusia will receive over €311 million, Castilla-La Mancha €80 million, and Galicia €86 million. More developed regions like Catalonia and Madrid will receive smaller but still significant shares
To ease financing, beneficiaries may request advance payments of up to 100% of the awarded aid, provided certain conditions are met. These efforts are part of a broader strategy to transform Spain’s energy system into one that is more flexible, robust, and climate-resilient. Storage plays a vital role in facilitating greater renewable penetration, cutting fossil fuel reliance, and supporting decarbonization goals outlined in Spain’s National Energy and Climate Plan (NECP) and the EU’s REPowerEU plan.
This new funding builds on earlier support under Spain’s Recovery, Transformation and Resilience Plan (PRTR), which has already mobilized €730 million for 4.5 GW of storage projects. The latest scheme is also expected to strengthen domestic industrial capacity to produce, assemble, and maintain storage technologies, following Spain’s success in wind and solar manufacturing.
