European Comission approves Spanish state aid scheme for energy storage and the transition to a zero-emission econom

The European Commission has approved a €699 million Spanish scheme to support investments in energy storage facilities to foster the transition to a net zero emission economy. The scheme contributes to achieving the European Commission’s priorities for 2024-2029, as set out in the policy guidelines calling for investments in clean energy and clean technologies. The scheme has been approved in accordance with the Temporary Crisis and Transition Framework for State aid measures, adopted by the Commission on 9 March 2023 and amended on 20 November 2023 and 2 May 2024.

 

The objective of the scheme is to provide investment aid for the deployment of large-scale energy storage. This will allow a shift away from dependence on fossil fuel imports and increase the penetration of variable renewable energy sources in the Spanish electricity system. Under this scheme, the aid, partially financed by the European Regional Development Fund (ERDF), will take the form of direct subsidies to support the construction of new electricity storage capacities for 1 800 MWh. The measure will be open to all storage technologies.

The Commission has found that the Spanish scheme is in line with the conditions laid down in the Temporary Crisis and Transition Framework. In particular, the aid (i) will be granted through a tender procedure open to all technologies; (ii) will comply with the ERDF co-financing rates, which will not exceed 85 %; and (iii) will be granted at the latest by 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 accordance with Article 107(3)(c) TFEU and the conditions set out in the Temporary Crisis and Transition Framework. On this basis, the Commission has authorised the scheme under EU state aid rules.

More information: European Commission