/MADRID, SPAIN, December 9, 2025, 10:15 CET, RENEWABLE MARKET WATCH™/
Iberdrola España, the Spanish subsidiary of global energy leader Iberdrola Group, has secured more than €170 million in grant funding to advance a comprehensive portfolio of energy storage, battery, and pumped hydro projects nationwide. The grants were awarded in the first competitive call for innovative energy storage initiatives, jointly financed by European Regional Development Fund (ERDF) resources for 2021–2027 and overseen by the Spanish Institute for Energy Diversification and Saving (IDAE). This substantial funding round underscores Spain’s commitment to accelerating the deployment of next-generation energy storage infrastructure as a critical enabler of grid flexibility, renewable integration, and decarbonisation.
Of the total grant amount, Iberdrola will allocate €130 million to co-finance an ambitious suite of eleven Battery Energy Storage System (BESS) projects distributed across multiple autonomous communities. An additional €22 million is earmarked for three advanced industrial thermal storage projects, while €18 million will be invested to expand the capacity of an existing pumped hydro storage facility. These investments will collectively enhance Spain’s energy security and support the country’s roadmap for a sustainable, low-carbon future.
The BESS assets will be strategically located in key regions—Extremadura (four projects), Galicia (three), Castile and León (two), Asturias (one), and Andalusia (one)—with each battery system delivering average power ratings in the 35–40 MW range. Notably, ten of these installations will feature shared grid access, creating operational synergies and maximising asset efficiency. Five BESS units are set to be hybridised with photovoltaic solar generation and another five with wind power, optimising renewable resource utilisation, while one facility will operate as a dedicated stand-alone energy storage system. This diversified approach highlights Iberdrola’s focus on flexible, resilient, and regionally tailored storage solutions.
Iberdrola’s energy storage strategy is anchored in the belief that efficient storage, both large-scale via pumped hydroelectric plants and distributed through BESS, is fundamental to achieving wide-scale electrification and grid stability. The company’s ongoing commitment to storage innovation not only reinforces its leadership in the Spanish and European renewables sector, but also positions Iberdrola as a driving force in the energy transition, enabling higher penetration of renewables and a more resilient power system for the future.
For more information and answers to your questions about the battery storage market in Spain and other European countries, and related content, you may read here: Europe Battery Energy Storage System (BESS) Market Outlook 2025 ÷ 2034
In order to download the executive summary brochure with sample pages, please access it here: Europe Battery Energy Storage System (BESS) Market Outlook – Sample
For a better understanding of the benefits of using our reports, you may read here: Benefit List – Reports of Renewable Market Watch – 2025
Image credit: Iberdrola
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