Spain has announced a €700 million initiative to expand its energy storage capacity by 2.5 to 3.5 gigawatts (GW), aiming to improve renewable energy integration and grid stability. The program, approved by the European Commission, will support battery energy storage systems (BESS), pumped hydro, and thermal energy storage across the country.

Managed by the Ministry for Ecological Transition and the Demographic Challenge (MITECO) through the Institute for Energy Diversification and Saving (IDAE), the funding covers up to 85% of eligible project costs, with applications open until mid-July 2025.

The storage solutions will help balance Spain’s increasingly renewable electricity supply, storing excess solar and wind power when demand is low and releasing it when demand rises. This reduces waste, improves reliability, and lessens dependence on fossil fuels.

Almost half of the funding will go to Andalusia, with Galicia and Castilla-La Mancha also receiving significant support. Projects must begin operations by the end of 2029.

Spain’s 2030 emissions reduction target is 32%, and this program is seen as a key step toward achieving net-zero by 2050. The country already generates over 50% of its electricity from renewable sources and exceeded its 2020 Renewable Energy Directive target.

By strengthening the grid and attracting clean tech investment, the initiative also promises economic growth and job creation across multiple sectors.