The Spanish Ministry for Ecological Transition and the Demographic Challenge recently announced the selection of 126 energy storage projects that will receive a total of €818.3 million in funding from the European Regional Development Fund. The call for proposals received 1,750 applications, and the final approved budget represents an increase of approximately 17% compared to the initial plan.

Among the approved projects, hybrid storage projects are the most numerous, totaling 69. There are 39 independent battery storage projects, and thermal energy storage and pumped hydro storage projects account for 15 and 3 respectively. These projects are expected to add 2.2 gigawatts of generation capacity and 9.4 gigawatt-hours of storage capacity to Spain's grid. The renewable energy sources paired with the hybrid storage projects are primarily solar photovoltaic (38 projects) and wind power (18 projects). Projects must be completed within 36 months of funding approval, with all construction work required to finish by the end of 2029.

The Ministry stated that once operational, these facilities will enhance the flexibility of the power system, facilitate the integration of more renewable energy into the grid, and advance the decarbonization process by providing lower-cost, zero-emission energy. Funding will be allocated based on regional development levels, with autonomous communities such as Andalusia, Valencia, and Galicia hosting a larger number of projects.

This funding allocation is another initiative under Spain's Energy Transition and Resilience Plan framework to support energy storage development. It complements earlier incentive programs launched using the EU's Next Generation funds, collectively promoting various projects, including hybrid storage, independent batteries, and technological research and development.