Spain has launched a new €90m funding round to accelerate the development of pumped storage hydropower, targeting close to 1GW of capacity and around 7GWh of long-duration storage, newswires have reported.
The second call, approved by the Ministry for the Ecological Transition and the Demographic Challenge (MITECO), forms part of the Recovery, Transformation and Resilience Plan and focuses on projects that introduce innovation in pumped storage design or operation.
Funding will be capped at €50 million per project or beneficiary entity. All supported schemes must be completed and operational by 30 June 2035.
The tender builds on the earlier BORALMAC call issued in September 2023, which resulted in €100m of support being allocated to four pumped storage projects representing more than 2GW of capacity. According to the ministry, the response to that first round demonstrated strong developer appetite for large-scale, long-duration storage in Spain.
The new call follows recent announcements of broader storage support measures. At the end of December, MITECO selected 126 storage projects to receive €818.3 million from the 2021–2027 European Regional Development Fund, largely aimed at storage co-located with renewable generation. Those projects are expected to add 2.2 GW of output capacity and 9.4 GWh of storage.
Eligible pumped storage hydro projects under the latest scheme include new reversible hydropower plants, upgrades or extensions to existing facilities, conversion of conventional hydropower plants into pumped storage, and the use of existing reservoirs to increase storage capability.
Programme administration will be handled by the Institute for Energy Diversification and Saving (IDAE). Projects will be ranked through a competitive process that considers not only financial robustness, but also technical contribution to renewable integration, employment impacts, regional development, environmental performance, gender equality, SME participation and innovation content.
MITECO said the grants are designed to strengthen the resilience and flexibility of Spain’s electricity system, in line with the National Integrated Energy and Climate Plan and the national Energy Storage Strategy, as variable renewable capacity continues to grow.
The application window will open at 12:00 on 4 February and close at 14:00 on 3 March.
