Grid-scale Spanish large-scale energy storage call backs more than 11 GWh of projects
Battery energy storage systems (BESS) accounted for 124 of 144 projects backed by European Regional Development Fund (ERDF) cash.
By Pilar Sanchez Molina Oct 27, 2025
Finance Grid-scale Industry Markets Policy Projects & Applications A Borrego Solar installation at 0 Hammond Street in Carver, Massachusetts. | Image: Greg M. Cooper/Borrego Solar The Instituto para la Diversificación y Ahorro de la Energía (IDAE) has published a proposal for provisional resolution of a first call for grants for innovative energy storage projects co-financed from the ERDF’s 2021-2027 budget.
The total endowment of the call, which was announced in May, was €839,708,779, as there was an increase of 20% over the initial budget. In the end, almost €59,000 of the enlarged budget was not awarded. Of the grants distributed, €343.35 million will finance storage projects co-located with renewable energy generation, €187.8 million will finance pumped hydro energy storage (PHES) facilities, €177.4 million will go to standalone storage sites; and €131.1 million will back thermal storage facilities.
With project promoters committing a total €1.995 billion to the 144 sites, it is expected the fund will back 2.61 GW/11.14 GWh of storage capacity.
The biggest beneficiary projects are the 200 MW ST Palmosilla and ST Cerrillo standalone grid-forming storage sites being developed by Cordovan company Rolwin in Cádiz. Each of those will receive almost €35 million.
The planning progress of eligible sites was a key factor is obtaining backing. More than 115 BESS who took part in the call have environmental impact assessments and area action plans. More than 75 projects had the licencia de obras building permit.
By contrast, 65% of bidding projects lacked access and connection permits.
Of the 144 successful applications, 124 are BESS, 17 are thermal energy storage (TES) and/or power-to-heat proposals, and three are PHES sites.
More than half the money allocated for TES and PHES projects was not awarded because of a lack of projects and was redistributed. Greenfield PHES projects have only a 2.24-hour storage capacity and projects costs of more than €500,000 per megawatt-hour of capacity.
The cash call will back 1.41 GW/5.35 GWh of renewables-plus-storage capacity and 910 MW/3.73 GWh of standalone facilities. More than 90% of the standalone storage projects will have grid-forming technology.
The Andalusia community was the biggest recipient of the call, with €374 million allocated, followed by Galicia (with €104.3 million); Castilla-La Mancha (€96.6 million); Extremadura (€73.1 million); Valencia (€46.4 million); Castilla y León (€38.7 million); the Canary Islands (€27.1 million); Catalonia (€23.5 million); the Region of Murcia (€12.2 million); the Principality of Asturias (€11.6 million); and Aragon (€2.2 million). The remaining €30 million was divided up among other regions.
Eligible projects must have a minimum 1 MW capacity and the cash can finance the storage systems and equipment, auxiliary systems, civil works, and other associated expenses.
Developers can request all of the funding up front from IDAE provided they meet certain conditions.
From pv magazine España
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