Extremadura is set to make a significant leap forward in energy storage with batteries thanks to a series of projects driven by Iberdrola and co-financed with European funds. The autonomous community, which had already established itself as one of the country's major renewable energy producers, is now reinforcing its role as a key region for storing that electricity and supplying it when the grid needs it most.
The bulk of this investment involves the installation of four large Battery Energy Storage Systems (BESS) and the expansion of a pumped-storage hydroelectric plant in the vicinity of the international Tagus River. These projects, supported by ERDF (European Regional Development Fund) grants for 2021-2027 managed by the Institute for Energy Diversification and Saving (IDAE), aim to improve the stability of the electricity grid, reduce the risk of blackouts, and make better use of the renewable energy already generated in the region.
Four BESS batteries in Cáceres to store renewable energy
One of the key elements of the plan is the installation of four battery storage systems in the province of Cáceres , distributed between the municipalities of Alcántara and Cedillo. These are BESS systems that will be integrated into existing renewable energy parks and will allow for the storage of surplus production, especially during peak sunlight or wind hours, for later release when demand is higher.
The new batteries will be located at the Tagus III and Tagus IV facilities in Alcántara, and at the Majada Alta and San Antonio projects in Cedillo. Together, these four systems will add 130 megawatts (MW) of power and a storage capacity of 538 megawatt-hours (MWh) , enough to supply electricity to tens of thousands of homes for a full day.
According to information released by the company and industry experts, these types of installations allow for the storage of clean energy when production exceeds consumption and its release into the grid during periods of higher demand or lower renewable generation. This is a key component for integrating more photovoltaic and wind power without impacting the system and for preventing electricity waste during peak generation periods.
These projects are part of a group of 11 BESS batteries that Iberdrola plans to develop in Spain with the support of European funding. In ten of the cases, including the facilities in Extremadura, a shared access model has been chosen , allowing for synergies between plants and optimizing the use of the electricity grid, reducing connection costs and increasing operational flexibility.
Furthermore, the deployment of these batteries is coordinated with the company's hybridization strategy: five systems will be combined with photovoltaics and another five with wind power.
Expansion of the Torrejón-Tajo hydroelectric pumping station
Alongside the batteries, the other major component of the project in Extremadura is the expansion of the Torrejón pumped-storage hydroelectric plant , located between the Torrejón-Tajo and Alcántara reservoirs, near the Monfragüe National Park. The aim is to increase its storage and generation capacity to further strengthen the stability of the system.
The planned project involves adding 32,5 MW of power and 991 MWh of storage capacity to this pumped-storage facility. This figure is in addition to the already installed capacity, increasing the volume of energy that can be transferred over time: water is pumped from the lower reservoir to the upper one when electricity is cheaper or renewable energy is abundant, and this water is then used to generate electricity when demand rises or prices increase.
This expansion has been allocated €17,6 million in aid , which falls under the same EU funding framework as the BESS batteries. This brings the total investment mobilized in Extremadura to €67,6 million , a figure that places the region among the main recipients of energy storage resources in this first call for proposals from IDAE (Institute for Energy Diversification and Saving).
Pumped hydropower is currently one of the most mature and widespread methods for storing large amounts of energy for extended periods. Combined with new lithium-ion batteries, it creates a much more flexible system, capable of responding to peak demand, covering periods of lower renewable energy generation, and mitigating sharp fluctuations in production.
The Torrejón plant thus joins other Iberdrola pumped storage facilities spread across the Iberian Peninsula, including La Muela, Villarino, Támega, and Santiago-Sil-Xares . Together, these comprise a fleet of approximately 4,5 gigawatts (GW) of installed hydroelectric storage capacity , which will be further strengthened by the new projects in Extremadura.
European funds, key to boosting storage in Extremadura
The battery and pumping projects in Extremadura are part of the first call for aid for innovative storage projects co-financed with ERDF funds 2021-2027 and managed by IDAE, an agency dependent on the Ministry for Ecological Transition and the Demographic Challenge.
In this round of funding, Iberdrola has been awarded over €170 million for projects across Spain, a significant portion of which is earmarked for Extremadura. Of this total, the company will allocate approximately €130 million to co-finance 11 BESS batteries , while €22 million is earmarked for industrial thermal storage in other regions. Nearly € 18 million has been allocated for expanding pumped storage in Extremadura , of which €17,6 million is specifically for the Torrejón project.
The Extremadura region is thus among the areas attracting the most investment in energy storage projects in this first round. In addition to the four batteries and the pumped storage facility, the region is part of Iberdrola's portfolio of six additional batteries in advanced stages of construction in Spain, recognized as Strategic Projects for Economic Recovery and Transformation (PERTE) within the renewable energy, green hydrogen, and storage (ERHA) sector.
The very dynamics of the IDAE call for proposals, structured within the ERDF 2021-2027 program , establish acceptance requirements for the aid and financial guarantees linked to the amount granted. For companies, this implies assuming commitments to implementation and start-up within specific deadlines, which accelerates the realization of investments and reduces regulatory uncertainty.
Alongside Iberdrola, the resolution includes other awardees with storage projects spread across different autonomous communities, but in the specific case of Extremadura, the focus is on these four BESS batteries and the expansion of Torrejón-Tajo , which reinforce the region's role as a renewable generation and storage hub.
This flow of community resources also responds to the energy reality of Extremadura: a community with a large installed photovoltaic capacity , a lot of clean energy at certain times of the day and the need to have technical tools to integrate it into the system without causing imbalances or energy spills.
Extremadura as a key element in the stability of the electrical system
The new batteries in Alcántara and Cedillo, along with the expansion of the Torrejón pumped storage facility, not only have a regional impact but are also conceived as part of a strategy to stabilize the entire Spanish electricity system . By being able to store and release energy according to demand, these projects provide a buffer against potential grid stresses or imbalances.
This aspect has been emphasized by regional politicians. The Minister of the Presidency, Abel Bautista , pointed out that these infrastructures provide a reinforcement to reduce the risk of events like the blackout that affected part of the country months ago. He noted that reports indicate a “medium-to-high risk at certain times for the Spanish electrical system ,” and that having large storage systems acts as insurance against such situations.
In his statements, Bautista emphasized that Extremadura, with its powerful photovoltaic production base, “needed stabilization through the installation of batteries .” In his opinion, the arrival of these investments contributes not only to the regional supply but also to the balance of the grid across the country, since the region exports a significant portion of the electricity it generates.
The regional official also emphasized that any investment linked to improving the energy system is seen as a development opportunity for Extremadura. Along these lines, he described the decision to promote the four BESS systems in the region and to reinforce the Torrejón pumped storage plant as very positive.
Energy experts consulted by various media outlets agree that, from an economic standpoint, storage projects help ensure the profitability of renewable energy installations . By allowing production to be shifted to times when electricity prices are higher, batteries reduce exposure to market volatility and facilitate the financing of new solar and wind farms.
All of this places Extremadura in a particularly relevant position within the Spanish energy transition: not only as a major exporter of renewable energy, but also as a benchmark territory in large-scale storage solutions , both with batteries and with pumped hydro systems.
Iberdrola and its commitment to energy storage in Spain and Europe
Although the regional focus is on energy storage batteries in Extremadura , these projects are part of a broader strategy by Iberdrola to deploy storage solutions throughout Spain and, by extension, in Europe. The company combines large-scale projects based on pumped-storage hydroelectric plants with BESS systems designed to support photovoltaic and wind farms.
In the Iberian Peninsula, the company already has 4,5 GW of installed capacity in hydroelectric and pumped storage plants, with complexes such as La Muela, Villarino, Támega, and Santiago-Sil-Xares, which function as veritable energy storage facilities in the form of high-altitude water. These assets are essential for providing service during periods of peak demand and for integrating more renewable energy into the European grid.
In the field of batteries, Iberdrola has been a pioneer in the use of lithium-ion technology applied to stationary storage. A relevant example in Extremadura is the installation of the first hybrid battery with photovoltaics at the Campo Arañuelo III plant, commissioned in 2021. This solution combines solar panels with a BESS system to better manage production and adjust electricity deliveries to the grid.
Outside of Extremadura, the company has developed other flagship projects, such as a 20 MWh battery in Puertollano , integrated into a solar plant that powers one of the largest green hydrogen facilities for industrial use in Europe, and two batteries in the Basque Country, located in Abadiño and Álava . In these cases, the batteries are connected either to specific wind farms or directly to the grid, demonstrating the diversity of possible configurations.
Iberdrola is currently working on six additional battery storage facilities in advanced stages of construction in regions such as Castile and León, Extremadura, Castile-La Mancha, and Andalusia. These projects have been recognized as PERTE (Renewable Energy, Green Hydrogen, and Energy Storage) projects. This momentum demonstrates that energy storage has become a structural pillar of its business strategy, not just an occasional add-on.
In the European context, the deployment of batteries and pumped storage infrastructure also contributes to the decarbonization and security of supply objectives set by the European Union. A more flexible grid, with the capacity to store energy at different points across the country, is essential to closing polluting thermal power plants and reducing dependence on imported fossil fuels.
With this set of initiatives, and very visibly with the energy storage batteries in Extremadura , Iberdrola and the Extremadura region are moving in the same direction: more renewables, greater storage capacity and an electrical system better prepared to face both the ecological transition and the stability challenges that it entails.
