Spain’s EPE Institute for Energy Diversification and Saving (IDAE) has approved the expansion of the budget allocation for non-repayable grants to support 2,416.54 MW of energy storage projects by 20% from €699.75 million (~$813.7 million) to €839.71 million (~$975.76 million).

These grants, aiming to support 144 projects, will be co-financed by the European Union’s ERDF 21-27 Funds.

IDAE will disburse the additional 20% grant amount if required.

The grants will be provided through a competitive bidding process. The maximum total aid per entity is capped at 20% of the total program budget, while the maximum aid per project is set at 10% for pumped storage and 5% for other technologies.

Eligible projects for the grants are:

• Standalone energy storage systems, with a minimum capacity of 1 MW, whether or not connected to the grid
• Hydroelectric pumped storage, with a minimum capacity of 1 MW on new or existing infrastructure
• Thermal storage projects, including power-to-power, power-to-heat, and heat-to-power systems
• Hybrid storage of at least 1 MW capacity with existing or new renewable generation

 

Projects will be evaluated on economic criteria, administrative viability, socioeconomic impact, and innovation and demonstration.

They will receive additional consideration for being located in rural or just transition zones, implementing gender equality initiatives, using European-made components, utilizing grid-forming or hybrid battery systems, and incorporating thermochemical or latent heat storage innovations.

The top five regions receiving the initial grant of €699.75 million (~$813.7 million) are Andalusia with €311.9 million (~$362.74 million), Castilla-La Mancha with €80.5 million (~$93.62 million), Galicia with €86.9 million (~$101.06 million), Catalonia with €19.6 million (~$22.79 million), and Madrid with €10.3 million (~$11.98 million).

 

Europe’s battery energy storage market grew by 15% in 2024, according to the European Market Outlook for Battery Storage 2025-2029 report by SolarPower Europe. However, the growth had slowed year-over-year.

Hybrid PPAs utilizing battery energy storage systems in Europe are attracting increasing interest due to their capability to provide considerable performance benefits and support project financials.