The Ministry for the Ecological Transition and the Demographic Challenge (Miteco) has approved a call for grants with the aim of boosting the deployment of large-scale energy storage. With funding of 700 million euros, it will facilitate the start-up of new installations that will contribute to making the electricity system more flexible, as well as encouraging the integration of renewable energy. Their increased penetration will also reduce energy costs.

The Institute for Energy Diversification and Saving (IDAE) will manage the subsidies, which will be co-financed with European funds from the 2021-2027 ERDF Multi-Regional Programme on a competitive basis. The deadline for applications began on 2 June and will run until 15 July.

Eligible costs
Eligible projects range from standalone energy storage to reversible pumped storage, thermal systems and hybrid storage initiatives with new or existing renewable generation sources. Eligible costs include civil engineering work, storage systems, auxiliary equipment and systems, and other associated costs.

With a maximum eligible cost per storage unit, the ministry envisages that over 100 projects could be financed. This will allow between 2.5 and 3.5 GW of storage capacity to be added to the grid, bringing the total storage capacity to more than 9 GW. The maximum period for implementing the different projects will be 36 months after the aid is granted, with a deadline of 31 December 2029.

Socio-economic cohesion
The ERDF 2021-2027 funds aim to strengthen socio-economic cohesion within the EU. This means reducing development disparities between regions. This is why aid will be distributed in varying amounts to the autonomous communities, depending on whether they are in the least developed, transitioning or most developed group. Beneficiaries may apply for advances of up to 100% of the amount of aid granted in order to start the projects, provided that they meet certain conditions.

The new grants are in addition to other support programmes previously developed by the Spanish government under the NextGenEU funds for the Recovery, Transformation and Resilience Plan (PRTR). Projects worth a total of 730 million euros have been incentivised so far, helping to start up new storage facilities with a capacity of 4.5 GW.

^{Photo: Ministry for the Ecological Transition and Demographic Challenge}