The Government has taken a significant step in modernizing the electricity system by approving aid amounting to 818,3 million euros to boost the large-scale energy storage throughout the country. This initiative has generated massive interest among companies and developers in the sector, to the point of requiring a significant increase in the initial budget.
In total, the following have been selected 126 projects spread across practically all the autonomous communitieswhich will add new power and Storage capacity to better manage renewable energy production and strengthen security of supply. The measure is supported by European funding and aligns with major EU and national decarbonization plans.
A call for proposals increased to 818,3 million euros
The Ministry for Ecological Transition and the Demographic Challenge (MITECO) has published the final resolution of the PINALM incentive line, destined to investment projects in energy storageThe final allocation amounts to 818,3 million euros, coming from the European Regional Development Fund (ERDF) for the 2021-2027 period.
The call for proposals started with an initial budget of 700 million, but the strong response from the sector – 200 million were registered 1.750 requests for help– has led to an increase in the available funds of almost 17%. This expansion allows for coverage of more initiatives considered viable and with a significant impact on the energy transition.
The funds are managed by the Institute for Diversification and Saving of Energy (IDAE), an agency attached to MITECO, which is responsible for both the technical and economic evaluation of projects and the subsequent monitoring of their implementation.
According to data released by the Ministry, the selected actions must be completed. before December 31 of 2029Furthermore, each beneficiary has a maximum period of 36 months from the final granting of the aid to fully execute the planned investments.
To facilitate the rollout, developers will have the option to request the IDAE advances of up to 100% of the amount of aid grantedalways within the conditions set out in the regulatory framework. This possibility of advancing funds is key to speeding up the commissioning of capital-intensive facilities such as storage facilities.
Types of storage and renewable technologies involved
The resolution of the call for applications shows a clear prominence of hybrid storage systemsThat is, those that are directly integrated with renewable energy generation plants. Sixty-nine projects have been approved in this category, making it the most numerous.
Secondly, the following stand out: batteries in standalone configuration, with 39 projects that will operate independently of the generation plants, providing flexibility services, grid support and management of stored energy.
To a lesser extent, although with an important complementary role, are the initiatives of thermal storage (15 projects) and the systems of hydraulic pumping (3 pumping projects). All of them will contribute to diversifying the available technological solutions.
In hybrid projects, established renewable energy sources play a very important role: photovoltaic solar participates in 38 initiatives and wind power in 18 casesNine projects have also been approved that They combine storage with thermoelectric technologies and four others that simultaneously integrate photovoltaic and wind power generation along with the storage system.
Taken together, the package of actions will add to the Spanish electricity system 2,2 gigawatts (GW) of additional power associated with storage and 9,4 gigawatt hour (GWh) capacityThis capacity will allow for better management of periods of high renewable production and will cover peak demand without relying so heavily on fossil fuel technologies.
Distribution by autonomous communities and territorial cohesion
The aid has been structured respecting the logic of the ERDF funds, whose objective is reduce development disparities between regions within the European Union. Therefore, the budget for the call was initially allocated by autonomous communities, with a larger allocation for those classified as less developed or in transition.
The final selection of projects was carried out in phases within each community. First, eligible applications were sorted by storage type and scoreGrants were awarded until the regional quota was exhausted. Afterwards, the remaining funds were redistributed in successive rounds among projects with positive evaluations and, finally, among different transition zones to make the most of the budget.
As a result, Andalusia leads the list with 31 projectsThe Valencian Community follows with 15 initiatives, and Galicia will host 11. Castile and León will have 10 projects, while Catalonia and the Canary Islands will each develop 9.
This distribution confirms that the program is not focused on a single region, but rather extends storage deployment across the entire Spanish geography, promoting a more balanced energy transition with economic and labor effects in different territories.
Impact on the electricity system and on the integration of renewables
MITECO emphasizes that strengthening energy storage will allow progress towards a more flexible, robust and resilient electrical systemIn practice, having more storage capacity makes it easier to better manage the fluctuations inherent in renewable energy and to respond to variations in demand.
By being able to store electricity when renewable generation is abundant and release it during periods of lower production or higher consumption, these projects will contribute to increase the penetration of renewable sources in the Spanish electricity mix. Storage thus acts as a balancing element, preventing energy spills and reducing the need to rely on fossil fuel power plants.
The Ministry also points to a direct effect on the energy costsWith more storage in the system, the greater availability of electricity generated from renewables—generally cheaper than conventional sources—is expected to translate into lower prices for consumers and businesses, especially in scenarios of high volatility in international fuel markets.
Furthermore, the expansion of this type of infrastructure will help to reduce dependence on fossil fuelsreducing exposure to energy and geopolitical crises. This aligns with the objectives set by the Integrated National Energy and Climate Plan (PNIEC) and the European REPowerEU initiative, which focuses on accelerating the transition to indigenous and clean energy sources.
In environmental terms, the set of projects will represent progress in the reduction of greenhouse gas emissionsThis facilitates a greater share of electricity consumption being met by renewable generation managed through storage. All of this contributes to fulfilling the climate commitments of Spain and the European Union.
Connection with other programs and strengthening of the industrial fabric
The ERDF funding for energy storage is not an isolated initiative. It complements a series of previous programs promoted by MITECO and IDAE using these funds. Next Generation EU of the Recovery, Transformation and Resilience Plan (RTRP), also intended for this type of technology.
In recent years, the following have been implemented: grant programs for innovative facilities hybrid storage, standalone solutions, thermal storage and reversible pumping, as well as specific calls for R&D projects and for actions on islands and other isolated systems.
Taken together, these programs have mobilized approximately an additional 730 million euros These incentives are in addition to the €818,3 million from the PINALM call for proposals, financed by the ERDF. The overall figure demonstrates a continued commitment to positioning energy storage as a central element of energy policy.
The deployment of these infrastructures not only impacts the operation of the electrical system, but also the development of a competitive European industrial fabric in storage technologies. Spain aims to consolidate its own capabilities in the manufacture and assembly of components, supply of equipment and maintenance of battery installations, pumping and thermal solutions.
The experience accumulated in sectors such as wind and solar photovoltaics, where the country has achieved a high degree of technological and production autonomy, serves as a reference for this new phase focused on storage. The combination of Public investment, innovation and market scale It can be crucial in attracting new factories, R&D centers and skilled jobs linked to the energy transition.
The package of 126 projects supported with European funds places energy storage in a more prominent position within the Spanish energy strategy, strengthening the grid, expanding the capacity for integrating renewables and opening up industrial opportunities around technologies that will be decisive in the coming decades.
