Brussels, 17 March 2025
The European Commission has approved a €699 million Spanish scheme to support investments in energy storage facilities to foster the transition towards a net-zero economy. The scheme contributes to the achievement of the priorities of the European Commission for 2024-2029, based on the Political Guidelines, which call for investments in clean energy and technologies. The scheme was approved under the State aid Temporary Crisis and Transition Framework (‘TCTF’), adopted by the Commission on 9 March 2023 and amended on 20 November 2023 and on 2 May 2024.
The purpose of the scheme is to provide investment aid for the deployment of large-scale energy storage. This will ensure independence from fossil fuel imports and higher penetration of variable renewable energy sources in the Spanish electricity system. Under the scheme, the aid, partially financed by the European Regional Development Fund (‘ERDF’), will take the form of direct grants to support the construction of 1 800 MWh of new electricity storage capacities. The measure will be open to all storage technologies.
The Commission found that the Spanish scheme is in line with the conditions set out in the TCTF. In particular, the aid will be (i) granted through a competitive bidding process open to all technologies; (ii) limited by the ERDF co-financing rates and will not exceed 85%; and (iii) granted no later than 31 December 2025. The Commission concluded that the scheme is necessary, appropriate and proportionate to accelerate the green transition and facilitate the development of certain economic activities in line with Article 107(3)(c) TFEU and the conditions set out in TCTF. On this basis, the Commission approved the scheme under EU State aid rules.
More information on the TCTF can be found here. The non-confidential version of the decision will be made available under the number SA.116836 in the in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.