Spain will subsidize various energy storage technologies
The Spanish government’s initiative to provide grants totaling EUR 280 million for stand-alone electricity storage systems, thermal energy storage, and pumped storage power plants is a significant step toward advancing energy storage and sustainability in the country. These grants are expected to promote the development of innovative solutions that enhance energy storage capacities, improve grid stability, and contribute to the overall transition towards cleaner and more sustainable energy sources. Such investments in storage technologies align with global efforts to reduce reliance on fossil fuels, mitigate climate change, and ensure a reliable energy supply for the future. This financial support will likely encourage research, development, and implementation of a wide range of energy storage projects, fostering a more resilient and eco-friendly energy landscape in Spain.
The recent public consultations conducted by the Ministry of Ecological Transformation and Demographic Challenge (MITECO) on the areas of co-financing have culminated in the development of the programs mentioned above, which are set to commence in September. These programs represent a proactive response by the Spanish government to address ecological and demographic challenges while advancing the country’s transition to a more sustainable and resilient energy landscape. By involving the public in these consultations, the government is demonstrating a commitment to inclusivity and transparency in shaping its policies and initiatives related to energy storage and environmental sustainability. These upcoming programs have the potential to stimulate economic growth, foster innovation, and accelerate Spain’s progress toward achieving its environmental goals.
How much and for what?
MITECO’s initiatives have resulted in the launch of two significant programs aimed at bolstering Spain’s energy storage capabilities. The first program, backed by a budget of EUR 180 million, focuses on two key areas: stand-alone energy storage systems (EUR 150 million) and thermal energy storage (EUR 30 million). The second program, with a budget of EUR 100 million, is dedicated to advancing pumped storage power plants (PHES). Under these programs, individual projects can receive substantial financial support, with a cap of €50 million per project, except for thermal technology projects, which are limited to a maximum of EUR 6 million.
The subsidies offered will cover a substantial portion of project costs, ranging from 40% to 65%. The exact coverage will be contingent on factors such as the size of the applicant company and the specific technology employed in the project. Furthermore, universities and research centers may be eligible for funding that covers up to 100% of their project costs, reinforcing the commitment to research and innovation.
The program targeting stand-alone energy storage systems and thermal energy storage mandates project completion by June 30, 2026. Meanwhile, for pumped storage power plants (PHES), the deadline for project realization extends until December 31, 2030. These timelines underscore the urgency and commitment to advancing Spain’s energy storage infrastructure and sustainable energy transition.
New climate and energy plan
Spain has undergone significant updates to its National Energy and Climate Plan (NECP), reflecting its commitment to renewable energy and energy storage advancement. The primary focus lies on boosting the installed capacity of photovoltaic systems, with a projected target of reaching 76 GW by the end of the decade.
Notably, Spain’s energy storage policy has also been revised to align with its ambitious goals. The country aims to achieve an installed capacity of 22 GW in energy storage facilities, with an additional emphasis on long-term energy storage systems (LDES), which is set at 15 GW. This forward-looking approach underscores Spain’s dedication to fostering a resilient and sustainable energy infrastructure.
Moreover, Spain’s commitment to hybrid systems has been exemplified through its subsidy program, initiated in March of this year. Key players like Enel Green Power have already benefited from this initiative, which supports the implementation of hybrid energy systems with substantial capacities, such as the 60 MWh and 38 MWh projects.
These strategic updates to Spain’s energy and climate plan reflect a comprehensive vision that encompasses increased renewable energy capacity, enhanced energy storage infrastructure, and hybrid system development, all contributing to a more sustainable and resilient energy landscape in the country.